Remedy Entertainment closed out last week with their financial report for investors covering the third quarter of 2024. As a publicly-owned company, the studio publishes reports every quarter, providing insight into the progress made by their development teams, alongside their financial standings.
If you've checked out our previous break-downs on these reports, you'll probably be very familiar of our setup. In this post, we'll examine the latest internal news and see what's next for the studio. Everything in black is what has been revealed in their previous H1 2024 report, with new details written in red.
As always, if you're interested in the numbers, I recommend checking out the reports directly to ensure that you're getting the most accurate data. In our round ups, we look primarily at the company's changes, the projects it's working on, and the challenges and achievements it had in the reported time.
The original report was posted on the Remedy Investors website on November 1st. On the same day, Liisa Eloranta (Senior Investor Relations Specialist at Remedy) hosted a livestream to discuss the publication, alongside Tero Virtala (CEO) and Remedy's newly appointed CFO, Santtu Kallionpää. You can watch the full broadcast HERE.
Highlights (Q3 2024)
Revenue. Revenue increased by 128.6% to EUR 17.9 (7.8) million.
Annapurna Partnership. In August, Remedy and Annapurna announced a new partnership. For Control 2, the US-based company will finance 50% of the development budget. Given their background, Annapurna will also gain rights to allow them to expand Control and Alan Wake onto film and television.
Self-Publishing. Remedy will be moving into self-publishing for FBC: Firebreak.
Royalties. Royalties throughout 2024 so far have come from game sales of Control and the original Alan Wake, including Alan Wake Remastered.
Tencent Loan. In September, Remedy and Tencent entered into an agreement for a EUR 15 million loan, with the terms agreed on during an Extraordinary General Meeting of Remedy on October 24th.
Alan Wake 2 Expenses. At the start of February, Remedy announced that they had sold 1.3 million units of Alan Wake 2 and had already recouped a "significant part" of the development and marketing expenses. Remedy changed the description to "most" of the development and marketing costs in the H1 and Q3 reports.
Post-Review Period. Alan Wake 2's second story expansion, The Lake House, launched on PlayStation, Xbox and PC (via the Epic Store). The release trailer for the DLC was broadcast during the PlayStation Showcase, alongside the reveal trailer for the three-player game set in the Federal Bureau of Control called FBC: Firebreak, formerly codenamed "Condor".
Internal Developments
Max Payne 1&2 Remake. The project is now in full-production mode and making steady progress towards important milestones.
Alan Wake 2. The game has already recouped most of its development and marketing costs, and saw the launch of the first expansion, Night Springs, over the Summer. On October 22nd, past the review period, Remedy launched the second expansion, The Lake House and the physical edition of Alan Wake 2.
FBC: Firebreak. Formerly "Condor", FBC: Firebreak has reached the full production stage and was announced at the PlayStation Showcase after the reporting period. Remedy will self-publish the game, which they have teased will be "mid-priced", in 2025. It is due to launch on PC via Steam and Epic Games Store, Xbox Series X|S, and PlayStation 5. Alongside purchase options, FBC: Firebreak will launch day one on PC Game Pass and Game Pass Ultimate, as well as in the PlayStation Plus Game Catalog for Extra and Premium members. In response to player testing, the team are now focused on "iterating on the core loop and implementing more of the UI (user interface)."
Control 2. The game is in the production readiness stage as originally planned, and will be scaling up, with expectations that it will move into full production next year. The reports list that "many of the critical features of the game have been implemented to mitigate production risk, and workflows and pipelines are being tested in preparation for full production."
State of the Studio
Publishing. Remedy has been exploring the potential of self-publishing and related business models, as well as opportunities from potential publishing partners. They are currently aiming to self-publish FBC: Firebreak.
Control IP. In February 2024, Remedy acquired full rights to the Control franchise from 505Games. A deal made in the late Summer saw Annapurna support 50% of Control 2's development costs, as well as rights extended to them to bring Control and Alan Wake IPs to film and television.
Core Management Changes. Santtu Kallionpää has joined Remedy as their Chief Financial Officer in August 2024.
Recap / 2021-2025 Studio Goals
While the previous few years have been dedicated to strengthening its position as a multi-project developer, the Board has established the key stepping stones that would define success internally going ahead. These goals include:
To create several successful games, with the goal of at least one major hit.
To own at least three expanding game brands with "long-term hit potential".
Strengthening the studio's position to select the ideal distribution for each project (e.g. self-financing, self-publishing, and working with partners).
Strengthening Remedy's status and value within Europe.
Maintaining a profitable and growing studio with "well-managed risks".
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