Remedy posts widening operating losses in Q3, says it wants to make games that “typically continue to sell for years”

Financial highlights

• According to its latest business review, Remedy reached €7.8 million in revenue in Q3, down 1.1% year-over-year.
• Operating loss increased from €3 million in the same period last year to €5.5 million.
• When looking at the nine-month period from January to September 2023, revenue decreased by 21% to €23.6 million, and operating loss amounted to €15.9 million.
• Remedy CEO Tero Virtala explained that losses continued to grow in the third quarter because “we have been investing more in our ongoing game projects than ever before.”
• Plus, development fees that the company received from its partners were lower than a year ago, which had a negative impact on revenue.

Remedy wants to make games that will sell for years

Virtala announced that Alan Wake Remastered has finally recouped its development and marketing costs during the third quarter. Speaking of Alan Wake 2, he noted that it is “too early to draw conclusions on the game’s commercial success,” but added that the studio is happy about its reception and thinks it has a “strong basis for good long-term sales.”

The Remedy CEO also shared some news about four games currently in development at the studio:

• Control 2 — in the proof-of-concept stage, which will continue for the next few quarters (the studio previously confirmed that the game will have a budget of €50 million, and revenue will be equally split between Remedy and publisher 505 Games);
• Condor — co-op multiplayer title set in the Control universe with a €25 million budget, currently in the production readiness stage (“We have acquired valuable insights into developing service-based games and are now in a better position to create a game players can engage with for years”);
• Codename Vangduard — free-to-play shooter in partnership with Tencent, currently aims towards completing the proof-of-concept stage by the end of 2023 (“We are defining the next stages of the project with our publishing partner”);
• Max Payne 1&2 remake — in the production readiness stage (“We have gained clarity on the style and scope of the game, and we have an exceptionally well organized team working on it”).

With four titles in its pipeline, Remedy is committed to delivering long-term revenue and operating profit growth, as each game has the potential to become a hit. “Our games and brands are transforming into longer-lasting experiences that typically continue to sell for years,” Virtala said.

Last year, the company noted that it plans to have at least three expanding brands in its portfolio, so the long-term goal is to not only collaborate with partners like Epic Games, 505 Games, and Tencent, but to also self-publish some of its games in the future — something the Finnish studio hasn’t done yet.