There are some quite scary overall numbers for CDPR on p.27. Revenue has increased very little compared to a year ago; however costs have increased hugely. Particularly 'Cost of products and services sold', 'Selling costs' (aka Marketing) and 'General and administrative costs' (probably includes salaries). So, it looks like Cyberpunk did very well in its first quarter, but is not bringing in anything like the level of ongoing revenue that they expected. I agree with you that they have over-invested in the expectation of higher sales from CP.
but it seems that overall CDPR has over-invested in Marketing and possibly new hires. I'd expect them to be making some fairly heavy cuts in those areas over the next several months (if they haven't already).
For CDPR there is an explanation on page 45 of https://www.cdprojekt.com/en/wp-content/uploads-en/2021/05/consolidated-financial-statement-of-cd-projekt-capital-group-for-q1-2021.pdf
Regarding current-period expenditures, the wrap-up of development of Cyberpunk 2077 and the resulting shift to the servicing phase, along with the change in the structure of development teams related to preliminary R&D work, had the following effect:
Completion of the development phase of Cyberpunk 2077 and reallocation of a large portion of the development team to work on the game’s updates resulted in a strong increase in product servicing costs recognized as Selling costs during the current period (30 210 thousand PLN in aggregate servicing costs),
There was also an uptick in developers’ involvement in new, future projects. Given the relatively preliminary (exploratory) nature of this work, the associated expenses (including external costs) were aggregated with General and administrative expenses during the current period (9 239 thousand PLN in total). This was offset by a significant q/q decrease in Expenditures on development projects related to projects in which R&D work is currently being carried out.
Also: As per their new business plan they want to develop multiple AAA titles in parallel. Far as I remember/understood this was the primary reason for their new hires. (This may have been postponed though due to CP2077 fixes and them first trying to make a generic engine or sth.)
Business plan presentation - not much info: https://www.cdprojekt.com/en/wp-content/uploads-en/2021/03/cd-projekt-group-strategy-update-1.pdf
Conference call - more info: https://www.cdprojekt.com/en/wp-content/uploads-en/2021/03/trascript-strategy-update.pdf
and we will, of course, develop AAAs in parallel. So –we’ll have parallel AAA development teams, and online as a different organizational unit, so to speak. Multiplayer/online components will one day enhance our future single-player games.
And 'Honest and direct communication with gamers' is still one of six important parts of their business model: https://www.cdprojekt.com/en/capital-group/business-model/
For GOGs selling costs there is an explanation on page 8:
In the GOG.com segment selling costs are mainly associated with marketing activities concerning the GOG.com platform, as well as further development work and processing sales on the platform.
It'll be interesting to see what Q2's numbers look like, which should be coming out soon. I wonder if we will see a further cooling off of the afterglow of CP?
There were some sales(*) of CP2077 though I dont know/remember how much off and when. That may have gotten them some more 'afterglow'.
(*) Edit: To make it clear 'sale' here in the last part refers to 'you can buy the game cheaper than before for a short time'.