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Cyberpunk 2077 had a terrible launch, and that caused CD Projekt Red to make some changes including, no multiplayer.
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I can't speak to what format CDPR had initially planned to do multiplayer for Cyberpunk. I do think an MMO format would have been a disaster, but if they wanted to do a type of deathmatch or battle royale that strictly focuses on pvp, that could still work really well. If this news is in regards to a Cyberpunk MMO, I think it's actually good that they're abandoning the concept.