What Happened to CD PROJEKT RED S.A.?

CD PROJEKT RED S.A. traces its origins back to May 1994, when Marcin Iwiński and Michał Kiciński founded CD Projekt in Warsaw, Poland, initially as a distributor of foreign video games for the domestic market. The company's ambition to create its own games led to the formation of the CD Projekt Red development studio in 2002. Their breakthrough came with 'The Witcher' in 2007, an RPG based on Andrzej Sapkowski's novels, followed by 'The Witcher 2: Assassins of Kings' in 2011, and the globally acclaimed 'The Witcher 3: Wild Hunt' in 2015, which cemented their reputation for rich storytelling and expansive worlds.

The studio's trajectory faced its most significant challenge with the highly anticipated launch of 'Cyberpunk 2077' in December 2020. Despite massive pre-release hype, the game was released in a technically unpolished state, particularly on older console generations, leading to widespread criticism, refunds, and its temporary removal from the PlayStation Store. This period was a major turning point, as the company's reputation for quality and player-friendly practices was severely tested. The issues stemmed from ambitious scope, technical complexities with their proprietary REDengine, and perhaps an aggressive release schedule.

In the years that followed, CD PROJEKT RED embarked on an extensive recovery effort, releasing numerous patches and updates to improve 'Cyberpunk 2077'. This culminated in the successful launch of the 'Phantom Liberty' expansion in September 2023, which was met with critical acclaim and significantly improved the game's standing. This recovery demonstrated the company's commitment to its products and its player base.

As of 2026, CD PROJEKT RED has entered a new phase of growth and strategic diversification. The company reported strong financial results for 2025, marking it as the second-best net profit year in its history, driven largely by the continued success of the Cyberpunk franchise, including the 'Ultimate Edition' on Nintendo Switch 2 and its inclusion in PlayStation subscription services. The company is now operating on a multi-project strategy, moving away from its reliance on a single major release. Key projects include 'Project Polaris' (the first game in a new Witcher trilogy, in its most intensive development phase with over 500 developers), 'Project Orion' (a sequel to Cyberpunk 2077), and 'Project Hadar' (a completely new, original IP described as an 'emotional, open-world experience'). Additionally, a new expansion for 'The Witcher 3', titled 'Songs of the Past', is slated for a 2027 release, and a remake of the original 'The Witcher' is also in development with an external studio. The company has also shifted its primary game development to Unreal Engine 5, a strategic move to enhance development stability and scalability.

A significant corporate development occurred on August 10, 2026, when the parent company, CD Projekt S.A., officially changed its name to CD PROJEKT RED S.A. This change reflects the company's sharpened focus on game development, especially after the sale of its digital distribution platform GOG.com to co-founder Michał Kiciński in late 2025. While the company's overall employee count has grown, there have been recent adjustments, including layoffs impacting 18 developers on 'Project Sirius', a Witcher multiplayer spin-off, in August 2026, as the team size was adjusted to reflect project needs. CD PROJEKT RED continues to expand its global presence with development hubs in Warsaw and Boston, and offices in Canada and Europe. The company's future strategy emphasizes leveraging current-generation hardware and expanding its franchises through new projects, aiming for a shorter development cycle for future Witcher trilogy installments.