Remedy has published its financial report for 2023. In it, the company made €33.9 million which is ultimately a decrease of 22.2%, down from €43.6 million during the same period in the previous year. Additionally, the developer reported an operating loss of €28.6 million for its full-year results but noted they received €5.2 million in royalties from Alan Wake Remastered.
Remedy has attributed this loss to “increased investments” in several upcoming projects. One of the projects named Kestral (formerly known as Vanguard) received a €7.2 million impairment charge after the game was changed from its planned free-to-play model to a premium title.
Remedy also showcased the three months ending in December 2023, where revenue declined by 24.4% to €10.3, with an operating profit at a loss of €12.8. All this is with the release of their very well-received sequel Alan Wake II, which went on sale in October, which CEO Tero Virtala described as a major success despite it being a “challenging year,” for the studio.
Virtala stated:
The sales of Alan Wake 2 started well despite a competitive launch window. Alan Wake 2 has already recouped a significant part of the investments made by Epic Games Publishing, and we expect the game to be a meaningful revenue and profitability driver for the year.
With Alan Wake and Control we now have two established franchises, and our ambition is to grow them into franchises that have high brand recognition, steadily growing user base, more regular cadence of sequels and an ability to generate revenue and profits and a high level.
Recently, near the tail end of Remedies fourth quarter, the studio also spent €17 million to purchase the rights to their previous game Control, from 505 Games. This gives Remedy complete control (no pun intended) over the upcoming sequel in addition to the multiplayer game known as Condor that will share that universe.
Additionally, Remedy is currently developing a remake of the first two titles in the Max Payne universe. It will feature Max Payne 1 & 2 in a single game and is expected to have a similar budget to Alan Wake II. Virtala added that:
We expect Condor, Control 2, and the Max Payne 1 and 2 remake projects to advance to the next stages of development during the first half of 2024
Remedy expects this year to be more profitable overall, with improvements in both revenue and operating costs. The developer did add that this was largely dependent on whether they decided to self-publish or seek out a new publisher for Control 2 and Condor. It was stated that “Growing and expanding these franchises will be a key part of our future,” moving forward.
On a more personal note, Alan Wake II recieved my only perfect score of 10 for this website. It is a must-play I stated, “Oozes originality and creativity, feeling like something you can’t replicate, and yet it leaves you wanting more.” If you would like to read the full review, click the link here.
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