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Due to this, the company lowered its expectations concerning its revenue and operating result.
Remedy Entertainment, which has worked on Max Payne, Alan Wake, Quantum Break, and Control, announced its decision to "take extra time" to develop Vanguard – an online PvE shooter co-financed by Tencent. The company wants to "ensure that it can be completed according to the high-quality standards characteristic of Remedy games."
Due to this and lower-than-expected game royalties in 2022, Remedy lowered the outlook concerning the development of its revenue and operating result in 2022. It now expects its revenue to remain at the previous year’s level and its operating result to decline significantly compared to 2021. In 2021, Remedy’s revenue totaled €44.7 million (about $45.5 million) and operating profit €11.4 million ($11.6 million).
Previously, Remedy expected its revenue to grow and operating profit to be on a lower level than in 2021.
The studio promises that these changes will not affect the total amount of development fees generated by Vanguard, only their timing.
"Remedy is currently working on five world-class game titles, and our capability to develop these games is stronger than ever. With our transition to a multi-project operating model, we have learned that it is better to keep our game projects in the early development phase for a longer period of time than in the past," said Tero Virtala, CEO of Remedy Entertainment.
The five projects in development at Remedy are Vanguard, Alan Wake 2, Condor – a spin-off game of Control, and remakes of the first two Max Payne games.
"We have decided to keep the game codenamed Vanguard longer in the current proof-of-concept phase and postpone the significant expansion of the development team until the year 2023," added Virtala.
The company will publish its half-year financial report on August 12, 2022.
Learn more about Remedy's decision here.
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