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[Thick Thighs Save Lives]

Remedy has published its financial results for 2023, and reported a 22.2% decrease in revenue to €33.9 million compared to €43.6 million during the same period last year.

The Finnish developer reported an operating loss of €28.6 million for its full-year results, but noted that it received €5.2 million in royalties from Alan Wake Remastered.

The numbers:​

Q4 2023:

• Revenue: €10.3 million (down 24.4%)
• Operating loss: €12.8 million (compared to operating profit of €2.1 million in 2022)

FY 2023:

• Revenue: €33.9 million (down 22.2%)
• Operating loss: €28.6 million (compared to operating loss of €0.6 million in 2022)

The highlights:​

Remedy attributed the decline in revenue and profit to "increased investments" in ongoing projects currently in development, in addition to an impairment charge of €7.2 million for its project codenamed Kestrel (previously Vanguard) after the firm announced it would be changing the title from a free-to-play multiplayer to a premium title last November.

The report also included results for the three months ended December 2023, with revenue declining by 24.4% to €10.3 million, and operating profit at a loss of €12.8 million.

Despite Remedy describing 2023 as a "challenging year," its CEO Tero Virtala highlighted the release of Alan Wake 2 in October as a major success for the developer.

"The sales of Alan Wake 2 started well despite a competitive launch window," Virtala said. "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."

He added: "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."

Speaking of Control, Remedy acquired the full publishing rights to the franchise from 505 Games for €17 million at the end of its fourth quarter. It now owns the rights to the original game, its sequel, and the multiplayer spin-off codenamed Condor that is currently in development.

As for other projects currently in development, Virtala said that the remakes of Max Payne 1 and 2 "are going to be a major new game with great potential" due to having a similar development budget as Alan Wake 2.

"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," he said.

Looking ahead, Remedy expects revenue to increase from the previous year and operating profit to improve. The developer said this was dependent on whether they decide to self-publish "and/or choose a new publishing partner" for Control 2 and Condor.

In the long term, the firm is focused on building the Remedy Connected Universe with Alan Wake and Control.

"Growing and expanding these franchises will be a key part of our future," it said, in addition to Max Payne.

Remedy revenue drops 22.2% to €33.9 million in 2023

Remedy has published its financial results for 2023, and reported a 22.2% decrease in revenue to €33.9 million compared…

www.gamesindustry.biz

 

[kikkis]

Sweet baby profited from remedys misery.

 

[The Cockatrice]

If they expect AW2 to make big bucks without them releasing it on the biggest money making PC Platform, then they're delusional.

 

[Zathalus]

If they expect AW2 to make big bucks without them releasing it on the biggest money making PC Platform, then they're delusional.

If it was up to Remedy, it would have likely launched day one on Steam.

 

[vaibhavpisal]

Both Control and Alan Wake are awesome franchises.

Glad to see they have big plans for them. Just make next Alan Wake an action game. Thats what you are good at.

 

[AJUMP23]

• Operating loss: €28.6 million (compared to operating loss of €0.6 million in 2022)

That is a lot of money to lose.

 

[lh032]

i really dont want to say this, but this probably will happen to most independent studio, just a matter of time.

 

[SidViscous]

Sweet baby detected, so no sympathy from me

 

[ProtoByte]

Should've released that physical version...

 

[Hudo]

One remedy for this could be to release AW2 on Steam.

Now, I know that Epic bankrolled this game and Sweeny has a hateboner for Valve but come on...

 

[FingerBang]

Hopefully, they make up for it this year. AWII is a fantastic game.

Sweet baby detected, so no sympathy from me

Sweet Baby Derangement Syndrome is officially a thing

 

[Thick Thighs Save Lives]

Keep in mind that the publishing deal they have with Epic means that they won't receive any €$ until Timmy & co recoups their investment. I presume that this hasn't happened yet.

As with the Epic Games Store, which boasted about its more developer-friendly terms, the new publishing label is meant to offer a better deal for game creators. Here are the key aspects, according to Epic:

• “Developers retain 100 percent of all intellectual property and full creative control of their work.”
• “Epic Games Publishing will cover up to 100 percent of development costs, from developer salaries to go-to-market expenses such as QA, localization, marketing, and all publishing costs.”
• “Developers earn a fair share for their work — once costs are recouped, developers earn at least 50 percent of all profits.”

Epic launches publishing label, signs creators behind Control, Inside, and The Last Guardian

An impressive lineup.

www.theverge.com

 

[adamsapple]

Sweet baby profited from remedys misery.

Sweet baby detected, so no sympathy from me

Keep this crap out of every topic.

 

[ssringo]

Bring on Control 2 (without the exclusivity bs please). Need the continuing adventures of Jesse Faden! Alan can get lost and stay lost.

 

[Randall365]

Go Wake, go break!

Seriously though, I presume most of the AW2 sales end up in this year's sales figures whereas the development costs fell last year.

 

[dragonyeuw]

Looking forward to them 180'ing their stance on a physical release, thanks Remedy.

 

[xrnzaaas]

Spending 17mil on publishing rights to Control IP is a lot of money for an independent publisher. Hopefully it works out for them long term.

And I still hope for a retail version of Alan Wake 2 after the DLC's are done.

 

[Hudo]

Next up will be the Max Payne 1 and 2 Remakes bankrolled by Rockstar right? And after that Control 2? I wonder, now that Remedy control Control again, who they gonna go for bankrolling that game. Or is 505 Games still on the hook for that?

 

[winjer]

"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."

So sales for Alan Wake still hasn't made back the budget for the game.
If it wasn't for Epic's money, this game would probably put Remedy in a very bad spot.

 

[T4keD0wN]

Damn, i wonder how much and when theyve got paid from epic and nvidia for aw2, but this seems rough. Hoping Control 2 does well.

 

[Kacho]

No Steam release for Alan Wake 2 really hurt them.

 

[Guilty_AI]

expecting AW2 sales to increase profit in 2024​

Steam release confirmed?

 

[Kerotan]

Support Alan Wake 2 boys. Fantastic game.

 

[skyfall]

Karma for this:

 

[MDSLKTR]

Keep this crap out of every topic.

 

[StereoVsn]

Support Alan Wake 2 boys. Fantastic game.

They would first have to either release a physical PS5 copy or better yet release on Steam.

They are missing a big chunk of sales due to above.

 

[Radical_3d]

I hope they realise that they need a physical release now.

 

[kruis]

Steam release confirmed?

DLC.

 

[Guilty_AI]

Support Alan Wake 2 boys. Fantastic game.

 

[Reaseru]

Go ask Sweet Baby or BlackRock for money.

 

[Dazraell]

Next up will be the Max Payne 1 and 2 Remakes bankrolled by Rockstar right? And after that Control 2? I wonder, now that Remedy control Control again, who they gonna go for bankrolling that game. Or is 505 Games still on the hook for that?

Based on their financial reports, it most likely looks like first will be Control multiplayer game, next one will be Max Payne Remake (1+2 is apparently combined into one game), third will be Control 2 and last one that game they're doing for Tencent

 

[Jaybe]

They spent too much on dance lessons

 

[sloppyjoe_gamer]

Looks like Alan Woke 2 had quite a Sweet Baby

 

[StereoVsn]

Based on their financial reports, it most likely looks like first will be Control multiplayer game, next one will be Max Payne Remake (1+2 is apparently combined into one game), third will be Control 2 and last one that game they're doing for Tencent

I would play Max Payne 1&2 Remake as long as they don’t f with the story. Well, and do a proper release.

 

[Braag]

I honestly keep forgetting that AW2 is a thing.

Karma for this:

I'm saying this as someone who isn't white, but I can't stand dialogue like this. Why make it about color or race, just say "asshole" without the "white" part. For a game that's trying to be "inclusive", shit like this just emphasizes the divide among some people.

 

[Randall365]

I hope they realise that they need a physical release now.

I am sure they must have thought about this, but to release a story driven game in the run up to Christmas and not sell a physical version just seems insane. I am digital only now and I suspect that the split is probably getting on for 75:25 digital, but they would have missed out on all the people who do not know a huge amount about games buying gifts for people and anyone who was thinking that they might like to trade it in when they are done with it.

I get the Steam release part, as they are probably thinking that there will be quite a few people who buy on Epic and then later on Steam - so they can increase revenue and get the kickback from Epic in the meantime.

 

[Radical_3d]

I honestly keep forgetting that AW2 is a thing.

Raytraced patch for PS5Pro. Believe.

 

[Zathalus]

Go ask Sweet Baby or BlackRock for money.

 

[Dazraell]

I would play Max Payne 1&2 Remake as long as they don’t f with the story. Well, and do a proper release.

I replayed Max Payne games a few months back and I honestly can see why they're combining both games into one. Both shares the same engine, story is continued between them and game is reusing a lot of characters and even some locations

I'm curious how they will approach the story and how many changes they will do and how James McCaffrey's passing will impact the development

 

[Roni]

Game came out really late last year and is really good, so 2024 should bounce back nicely.

 

[LordCBH]

Waiting on a physical release. If it doesn’t happen, then I won’t play.

 

[Fake]

So, AW2 not good?

 

[mrBarrelNut]

Get woke, go broke. I wonder how much they paid to Sweet Baby Inc. for their "consultation"?

 

[Fake]

Support Alan Wake 2 boys.

Why supporting a game that according to Remedy is selling well? Somehow without physical media and steam release?

 

[Kerotan]

They would first have to either release a physical PS5 copy or better yet release on Steam.

They are missing a big chunk of sales due to above.

Why not buy it digital?

DLC.

Excellent can't wait I bought the deluxe edition.

Why supporting a game that according to Remedy is selling well? Somehow without physical media and steam release?

Because it's a good fucking game and deserves to be supported. I swear you freaks want all these Devs to go bust.

The game can be selling well but it deserves to sell Great.

 

[SlimySnake]

Maybe next time you make an Alan wake game, dont make someone else the protagonist and have actual combat.

 

[Fake]

Because it's a good fucking game and deserves to be supported.

In your opinion is good. I find very mid, and if the game is selling good, more than good even, don't need any adicional support.

 

[simpatico]

They released a visual novel instead of a game

 

[rhodesianshepard]

Both Control and Alan Wake are awesome franchises.

Glad to see they have big plans for them. Just make next Alan Wake an action game. Thats what you are good at.

I guess. If AW2 had the combat of RE4 remake it would have been an all time great game. It is surprising that the studio that made Control had such poor gameplay mechanics. The enemy variety, stiffness of weapons, and lack of destruction/physics were very noticeable. They definitely sacrificed improvement in those areas for upping the graphics and atsmosphere, which were both A+

still an 8.5/10 game. One of the more unique games I have played. The blood hotel section is one of my favorite level designs in years. I hope they stick with the same formula with AW3, but just massively improve up on the combat

 

[Kacho]

Opinions on this game seem to get more negative over time.