Remedy Entertainment Reports Revenue Drop of 22.2% for 2023: Increased Investments in Games the Cause
Despite the successful launch of “Alan Wake 2” in October, Finnish game developer Remedy Entertainment reported a significant decrease in revenue for the year. The company’s revenue dropped from €43.6 million to €33.9 million.
Reason for Revenue Decline: Increased Investments in Game Projects
Remedy Entertainment CEO Tero Virtala attributed the revenue decline to increased investments in the studio’s game projects, specifically “codename Vanguard,” which resulted in an impairment charge. Out of the five games in development during the year, Remedy co-financed four based on its own brands, while “Max Payne 1&2 remake” was fully funded by IP owner and publishing partner Rockstar Games.
Progress on Remedy’s Game Projects
“Control 2” continued in its proof of concept stage, with the fourth quarter of 2023 spent on world building and combat development. “Codename Condor” and an unknown game saw progress in the development of combat and game mechanics.
Upcoming Projects and Revenue Expectations for 2024
“Condor,” “Control 2,” and “Max Payne 1&2 remake” are expected to advance to the next stages of development during the first half of 2024. Virtala expressed optimism for the company’s future, stating, “We expect Condor, Control 2, and Max Payne 1&2 remake projects to advance to the next stages of development during the first half of 2024.” He added, “With the refined multi-project model in place, increased focus on Remedy core strengths and the dedication of almost 400 Remedians, we are thrilled with a great lineup of upcoming game launches.”
Recent Acquisition: Control Franchise Rights
The company recently acquired the rights to the “Control” franchise, including “Control 2,” “Condor,” and any future “Control” games.
What’s Next for Remedy Entertainment?
The company’s revenue is expected to increase in 2024, with a specific outlook for the year to come when decisions on business models and potential agreements for “Control 2” and “Condor” have been made. Stay tuned for more updates on Remedy Entertainment’s exciting lineup of games.
