CD Projekt Red may be fined 1.3 million for disclosing Witcher 3 sales numbers - Polidicks

Apparently disclosing sales figures is against Polish law and they may be fined 1.3 million (last year's net profit) [quote]A few days ago, CD Projekt provoked widespread admiration sales results of the latest "Witcher 3". The game, which raises the whole world in just two weeks of release sold more than 4 million copies. - The Witcher 3: Wild Hunt since its release remains at the highest places your sales letter, including Steam, GOG.com and Amazon. According to data from Sony Witcher 3: Wild Hunt it was also the best-selling title on the PlayStation Network in May. The game CD PROJECT-in three weeks also ranks first on the list best-selling titles in the UK by GfK - the company boasted in a broadcast message to the media. - We are more than pleased with the sales of The Witcher 3, which exceeded our expectations. Already on release we turned the whole we paid for three years expenditure on production - commented Adam Kicinski, CEO of CD Projekt. This message appeared in various media and delighted investors, the company's share price soared on Tuesday by approx. 26 percent. The problem is that the company could bring these great sales volumes of data in an incorrect manner. Listed companies should in fact put information which may affect the course of their shares in the ESPI system, so that all investors have equal access to information. CD Projekt this information in ESPI not placed. CD Projekt explains that the message was marketing information and ESPI spaces non-publishing is present. However, due to interest in the Financial Supervision Commission. - The case is known to us and explain it with the company. Under the law, if the information is confidential nature of the information, it must be passed by ESPI. If the information does not satisfy this condition, there is no such obligation - said Maciej Onetowi Krzysztoszek with the KNF. He would not yet disclose the details and prejudge the case. The question is, what is in accordance with the law confidential information? Act on Trading in Financial Instruments says that confidential information is one that "after the transfer to the public could have a significant effect on the price of financial instruments or on the price of related derivative financial instruments (cenotwórczość)". It is impossible not to note that the data on the volume of sales had a definite influence on the share price, which this time jumped by more than a quarter. CD Projekt can therefore have trouble.[/quote] Ran the entire article through Google Translate to save you the trouble. What a strange law. Source: [url]http://biznes.onet.pl/gielda/wiadomosci/inwestorzy-cd-projekt-moga-czuc-sie-oszukani-knf-bada-sprawe/v0qd19[/url]

Wow, really? That is fucking weird.

What the fuck kind of retarded law is that?

oh no a 1.3 million fine i hope cd projekt has that kind of money

[QUOTE=Rapscallion92;47953679]What the fuck kind of retarded law is that?[/QUOTE] If you'd actually read the article you'd know [quote] The problem is that the company could bring these great sales volumes of data in an incorrect manner. Listed companies should in fact put information which may affect the course of their shares in the ESPI system, so that all investors have equal access to information. CD Projekt this information in ESPI not placed. [/quote] Doesn't sound that stupid to me. It's a law probably related to trading based on insider information

What? So basically they had a lot of sales and said "we made our money back almost instantly" and because of that they were given a fine for not telling the ESPI that they would say that and because that would increase sales unfairly? [editline]14th June 2015[/editline] [QUOTE=Goz3rr;47953710]If you'd actually read the article you'd know Doesn't sound that stupid to me. It's a law probably related to trading based on insider information[/QUOTE] But what did they do exactly. This article is strange and hard to read because it was roughly translated. It really doesn't even say what they have supposedly done. Just that they "could", but why? How? In what manner? What were they supposed to tell them? I don't fucking know.

The whole financial system is such convoluted nonsense. I see the benefit in it, but really, it's just a pathetic mess.

[QUOTE=Wii60;47953698]oh no a 1.3 million fine i hope cd projekt has that kind of money[/QUOTE] That was their last year's net profit, GOG included from what I understand

[QUOTE=Velocet;47953750]That was their last year's net profit, GOG included from what I understand[/QUOTE] they also didnt release anything last year 4 million sales of a highly acclaimed rpg easily will fix this situation

[QUOTE=Wii60;47953756]they also didnt release anything last year 4 million sales of a highly acclaimed rpg easily will fix this situation[/QUOTE] Yeah but still quite a chunk of change for such a company. It's 1/16th (33 million) of the entire budget of The Witcher 3's development.

[QUOTE=Rapscallion92;47953679]What the fuck kind of retarded law is that?[/QUOTE] The sales data is information which can influence the valuation of a company's shares, and this information did cause the share value to increase by 26%. But not all shareholders (or investors in general) were given equal access to this information as it wasn't published through proper channels. It is quite simple. If a company wants to be listed on an exchange, it must follow the rules of that exchange. Shame on the OP for not reading the article that they posted.

In case anyone's wondering Polish laws are generally made up just so you have to either pay huge taxes or pay huge fines, especially when we're talking about companies

[QUOTE=Velocet;47953764]Yeah but still quite a chunk of change for such a company. It's 1/16th (33 million) of the entire budget of The Witcher 3's development.[/QUOTE] Even if they brought in half of the cost they are selling the copies for ($30), at 4 million copies that's $120 million. Their total profit was probably closer to $200 million, I don't think 1/200th of their profits is going to cripple them.

And this is how you get a company to want to leave your country.

I'm sure CD Projekt can move to another country, such as the UK, where half the development team probably already moved to

[QUOTE=Wii60;47953756]they also didnt release anything last year 4 million sales of a highly acclaimed rpg easily will fix this situation[/QUOTE] That is still a lot of money

Well that's pretty bloody stupid. Disclosing sales figures should be a requirement if anything.

[QUOTE=Intoxicated Spy;47955605]And this is how you get a company to want to leave your country.[/QUOTE] How our country operates makes the most want to leave, the overabundance of Polish immigrants everywhere isn't without a reason.

Assuming it's 3mil sales flat, they've made over 190 mil dollars off the game so far, after calculating in GOG's/steam cut from sales (but also not including their own self published sales. I think 1.3 is no problem at all.

[QUOTE=Antlerp;47955668]I'm sure CD Projekt can move to another country, such as the UK, where half the development team probably already moved to[/QUOTE] that would probably increase their living and office space expenses, which would also require an increase in salary, which would skyrocket the production costs of their games, which would probably make them seek money from bigger publishers and becoming their bitch...

[QUOTE=Horse Strangler;47957125]Assuming it's 3mil sales flat, they've made over 190 mil dollars off the game so far, after calculating in GOG's/steam cut from sales (but also not including their own self published sales. I think 1.3 is no problem at all.[/QUOTE] GOG is owned by CD Projekt Red.

[QUOTE=Levelog;47957224]GOG is owned by CD Projekt Red.[/QUOTE] Technically GOG and CD Projekt RED are owned by CD Projekt Capital Group. It's not like the guys who developed The Witcher are also managing GOG or developing Galaxy.

[QUOTE=Janus Vesta;47957591]Technically GOG and CD Projekt RED are owned by CD Projekt Capital Group. It's not like the guys who developed The Witcher are also managing GOG or developing Galaxy.[/QUOTE] I guess I assumed it was Capital group who was actually having to pay the fine. Hence they get all the money.

I'm thinking the fine might be in polish zloty. Which would make it ~only 314815.84 Euro. It would make sense, since it's possible that polish law sees hard ceilings for fines whihc are almost doubtlessly defined in zloty. [QUOTE=LSK;47953727]What? So basically they had a lot of sales and said "we made our money back almost instantly" and because of that they were given a fine for not telling the ESPI that they would say that and because that would increase sales unfairly? [editline]14th June 2015[/editline] But what did they do exactly. This article is strange and hard to read because it was roughly translated. It really doesn't even say what they have supposedly done. Just that they "could", but why? How? In what manner? What were they supposed to tell them? I don't fucking know.[/QUOTE] My best guess is that polish law has a requirement to put certain information into their company register. So that everyone has "equal" access to information as that is the channel trough which the information is legally released. CDR didn't do this and merely put this information out over nonstandard channels. I doubt they'll actually get fined, since they did release this information publicly and it should not have impacted any kind of insider trading.

[QUOTE=Intoxicated Spy;47955605]And this is how you get a company to want to leave your country.[/QUOTE] Securities exchanges all around the world would have similar rules. If information is to be released which can affect the share price, all investors should have equal access to that information.