Things have somehow gotten even worse for cd projekt, red and cyberpunk 2077, just as some of the negative news cycle was starting to calm down, we got hit with the big news that cd projekt red was hacked. It seems like a wealth of information, was taken and is going to be shared online imminently in this video. What i want to do is break down the larger implications of what exactly was stolen. I think a lot of people are reading this thinking. Oh, that kind of sucks – or they deserve that as some of the narrative has developed into, but this is really big for a couple of reasons. That may not be immediately obvious. Some of this will be giving us a lot of background or inside information, and some of this will be very, very bad for developers. So in this video i want to discuss all of that and just the larger impact this is likely to have so. Firstly, if you haven’t followed it, i will read the actual statement given out by cdpr as well as the hackers themselves. If you already read this, you could skip ahead to my analysis with the timestamp, but earlier today cdpr did tweet out important update. Yesterday, we discovered that we have become a victim of a targeted cyber attack, due to which some of our internal systems have been compromised. An unidentified actor gained unauthorized access to our internal network collected certain data belongs to cd, projekt capital group and left a ransom note.

The content of which we released to the public, although some of the devices in our network have been encrypted, our backups remain intact. We’Ve already secured our it infrastructure and begun restoring the data we will not give into the demands nor negotiate with the actor being aware that this may eventually lead to the release of the compromised data. We are taking necessary steps to mitigate the consequences of such a release, in particular approaching any parties that may have been affected due to the breach. We are still investigating the incident. However, at this time we can confirm that, to our best knowledge, the compromise systems did not contain any personal data of our players or users of our services. We’Ve already approached the relevant authorities, including law enforcement and the president of the personal data protection office, as well as i.t forensic specialists, and we will closely cooperate with them in order to fully investigate this incident. And then the ransom note left by the hackers does read hello: cd projekt, you have been especially pawned. We’Ve done full copies of the source codes from your perforce server for cyberpunk 2077 witcher 3 gwent and the unreleased version of witcher 3. we’ve also dumped all of your documents relating to accounting, administration, legal hr, investor relations and more also, we have encrypted all of your Servers, but we understand that you can most likely recover from backups which they did. If we will not come to an agreement, then your source codes will be sold or leaked online and your documents will be sent out to our contacts and gaming journalism.

Your public image will go down even more, and people will see how badly your company functions. Investors will lose trust in your company and the stock will dive even lower. You have 48 hours to contact us. So, honestly, this entire thing seems like it’s, a skit from a tv show or a movie not to make light of the seriousness and the severity of the current situation and in particular for those affected. Although an important piece of information that i think a lot of people are overlooking is, this is actually the second time this has happened to cd projekt red back in 2017, they had a very similar situation where some of the design documents around cyberpunk 2077 were hacked, And put up for a ransom, then again, cd projekt did not pay it, but it’s pretty wild to see this happening twice in just four years to the same company affecting the same game. It’S. Also worth noting a lot of this information may come out very soon. Like literally today, cdpr mentions how they discovered this hack. Yesterday, then likely they took some time to actually figure out what exactly went wrong start. Restoring some of those backups they’re telling us about it today and the hackers gave them 48 hours that 48 hour window is likely coming to a close later today or even early tomorrow, so likely right as you’re watching this video we may see some of these files Start leaking online or perhaps getting covered by news websites if they actually go to do that, which we’ll talk about more in a moment, but now let’s break down what actually was taken and the massive impact this can have suits mentioned early on how the perforce server Was hacked? This is basically just a server where you could remotely connect to actually download files.

So say your developer. At cd projekt red you connect to the cyberpunk firefox server download some of the latest files source code and, as it is stated, the source code for cyberpunk 2077 was taken, and this could be massive for a number of reasons. I saw a lot of people immediately. Jumping to the mod ability of it that if modders had the source code of the game, it would make making mods for the game a lot easier and a lot more straightforward. And although this is somewhat true, you would still have to do some reverse engineering there’s. Also, a huge problem with that in that it is highly illegal to use stolen source code to create mods. If you look at the past couple of source code, leaks from capcom and nintendo modders would not touch those, or at least the vast majority didn’t, because again that is highly illegal. You can get into some serious trouble if you’re caught doing that. Several modders in the cyberpunk scene have already come out to say they would not be using the source code, even if it does come out and is made available to them. So i wouldn’t put a ton of stock into huge advancements in modding coming as a result of this, but where this could become quite a big deal is in the form of data mines on that source code. So right now we just have the base game of cyberpunk 2077, but in that source code it may contain details around the multiplayer mode, the expansions on the way, and even some of that free dlc.

In fact, it is almost certain some information about at least the dlc, which is expected later this year and again with cyberpunk. Free dlc is different than paid expansions. So if this does end up getting posted online, almost certainly people will immediately start data mining it and details around this will come out. This could be really bad for cdpr in that one, just ruining what’s happening next with the game, in particular with that multiplayer mode. I could see a lot of information coming out about their early plans with it. It still is several years away. So, who knows how much we will or won’t get as a result of this, but i would definitely be wary of major spoilers around what the future of cyberpunk is going to look like. This will also create an interesting situation in that it’s going to be telling which media outlets do or don’t cover it or just how that will all be handled, because, at the end of the day, you are illegitimately gaining access to a future. Look at one of the most popular and best selling games of the past year, but due to the fact that it’s literally because the source code leaked, i could see this being kind of hard to cover or a touchy subject with some media outlets. So it’ll be interesting to see how that situation evolves if media outlets even end up caring one way or another, though, if the source code leaks, we will almost certainly find out more about what’s next for this game.

They also got the source code for the witcher, 3 and gwent kind of a similar story in terms of modding. The witcher 3 modding scene is much farther along, so perhaps some people will look at this or try and create mods on it again. It’Ll be very illegal to do so so i’m sure most will avoid it, but considering that game doesn’t have as much scrutiny around it compared to cyberpunk, i wouldn’t be shocked if more people actually look at the source code when it comes to the witcher 3, but Also, they mentioned that they have an unreleased version of the witcher 3. there’s been a lot of speculation as to what exactly this is. Is it some in development build of some modified version of the game? In reality, it seems like this is probably just the next gen version. Cdpr has confirmed a next gen version of the witcher 3 is coming, and this will almost certainly be that if it does leak, we could get details about what exactly the next gen upgrade. Could look like but i’m sure not many people will care about this. One probably run at a higher frame rate, probably have higher resolution targets. I know the source code is extremely harmful to cdpr. I think a lot of people don’t care as much or don’t sympathize as much with that particular struggle. I’Ve seen game source codes leak in the past, where this becomes a lot bigger and a lot more harmful for cdpr is with these documents leaking, as this could have huge implications they claim to have accounting documents.

This could say a lot about the game, exactly how many copies were sold but, even more importantly, a figure that cdpr likely wasn’t going to make public. How many copies were refunded. We potentially could see the pre order. Changes over time will be a dip in pre orders in that final week, when some of those reviews came out and had kind of that weird sketchy review situation in general. How many copies of this game were refunded to players with cdpr’s refund program? A lot of that information we probably would have never had access to. Otherwise, i wouldn’t be shocked if it comes out as a result of this administrative documents were also leaked, it’s, not totally clear what this will entail, but this could definitely give us an insight as to what was going on behind the scenes during the development of cyberpunk. The development of the scheme, of course, has been under a lot of scrutiny, post launch and depending on what these documents actually entail. If you have something that talks about not showing the game on base. Last gen discussion of the performance issues, discussion of delaying it further or not delaying it further why they can’t delay it further or even just the review code situation and how that was handled. That could be really really big, it’s, almost guaranteed to blow up in the media and get a ton of coverage. Now we don’t know if that’s the nature of these particular administrative documents, but it definitely seems like it could be, whether it be memos or emails back and forth seems like they got full access to cdpr’s internal servers and a lot of information can be garnered from That, but what is perhaps the most concerning are the legal, hr and accounting documentation of employees, as it seems incredibly likely that individual employees or developers had their personal information.

Leaked there’s been this huge narrative that cdpr deserves this for releasing a broken game or some of the decisions they made around the release of the game. And although sure you can make that argument, if it was just the source code, it’s harming the company their value overall, it seems like some of the people that will very realistically be harmed directly from this are those individual employees, jason schreier himself, actually tweeted out? Having talked to some of the employees, the company told staff they’ll need to take several specific precautions to protect their identities and prevent fraud, it’s going to be a real hassle for many of them, it’s likely their most personal details were leaked here. Their salaries may come out with some of this accounting information, not to mention things like social security numbers or tax. Identifying numbers is gon na really suck and i’ve seen a lot of people making light of this situation, and perhaps you just didn’t, consider this aspect of it or maybe you just don’t care, but even if you absolutely hate cdpr and their handling of cyberpunk 2077 it’s Really not a justification for the lower level or just everyday employees and developers to get punished. These are people who are just crunching to get the game out and based on some reports. Apparently new the game had problems. It seems like the reason it released was more of an executive decision and then the flip side, as i mentioned before, they did mention no individual user info was leaked.

A lot of people are concerned around having a gog account having some payment information on there, as well as their own name, address, etc. Some people have said: cdpr could be lying, that no user info was leaked, but they literally can’t and that it would be against the law in poland and they would get in a ton of trouble if they didn’t tell users immediately that their information was leaked. So it seems like individual users are mostly okay as a result of this, which is definitely good. There’S also been this narrative that this could be faked, that cdpr is doing this to gain positive pr or get people to feel bad for them. Now. That seems very unlikely one of the obvious reasons being they explicitly name how they requested help from both the government police, as well as private security firms they putting a giant spotlight on themselves. If you think all those people are not going to be able to figure out, they faked this you’re, probably wrong and a bunch of information comes out revealing employees personal information over the next couple of weeks. You have to bet that people are going to be very, very angry with them not happy or forgiving, which, on that note, the leaker here does say that he’s going to be leaking. Some of this information to partner journalists and you have to question who’s gon na publish that, like it seems like whoever published this, would get a ton of backlash and put under a ton of scrutiny not only from law enforcement trying to find the person to actually Hack into cdpr, but even just the community, for actually supporting and enabling this type of behavior.

Now, of course, there could just be a bunch of dead drops online, and then journalists will cover it anyway, but that too will be telling if any journalists publish some of this information using the hacker as a direct source. That is definitely not a good look. There’S been some discussion as to whether or not this will lead to a delay with the next patch, and it seems like it could somewhat. Although technically we don’t even have a release date for the next patch, just at some point in february it seems likely they could probably still hit the february window. Considering we have several weeks to go in the month, so perhaps internally it’s been delayed a couple of days, but we don’t know that target date anyway. Overall, this is a really sad situation for cd projekt red and a really bad one for them. This is going to be one of those things that continues to cause harm to their overall image, especially depending on what kind of information comes out as a result of this, the news alone is huge, but the largest part of the story is yet to happen. If some of the stuff starts leaking any further, if some stuff doesn’t start leaking, then you’re gon na have the conspiracy theory start popping up as to how this all was fake. So one way or another cdpr is going to have a rough couple of weeks. Hopefully, you guys found this one informative.

As always again, i thank you for watching.