Revenue down at Remedy, but on the upside Alan Wake 2 is now playable from start to finish
Alan Wake developer Remedy Entertainment has explained the 2021 remaster has yet to turn a profit, but says the long-awaited sequel is now full playable from start to finish.
The Swedish studio broke the news in its fiscal report for the year ended December 31, 2022, where it revealed that revenue decreased by 31.2 percent year-on-year to €13.6 million ($14.1 million). It also reported an operating loss of -€600,000 (-$640,000) for the fiscal year.
The company said that downturn was the result of 2022 representing a "stronger investment phase," with Remedy currently developing five triple-A projects. Four of those projects are being co-financed by the studio and are based on Remedy-owned brands, while the other is fully funded by a publishing partner.
Remedy has explained that when those projects advance to their next phases of development in 2023, its own investments will also increase, meaning more losses are expected in the current fiscal year.
"In our outlook for 2023, we expect revenue to decline from the previous year and to have a negative operating result. As described above, we are co-financing most of the projects together with our partners and all these projects are based on Remedy-owned brands increasing the value of our company in the long run," wrote the studio.
"A greater number of co-financed projects results in a smaller amount of development fees. This also impacts our profitability in the short term, as a greater proportion of development costs are covered by us. However, such investment will increase the royalty potential for the upcoming years."
Remedy says that pivoting to a multi-project model has been "going well" overall, but that there have also been "growth pains" along the way. For instance, the
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