The company attributes the lack of profit to the increase in development costs.
Alan Wake and Control developer Remedy Entertainment released its financial results for the second quarter of 2022.
The report reads that the company's revenue remained at the previous year’s level and amounted to €9.4 million. The main sources of Remedy's revenue, according to the company's CEO Tero Virtala, were royalties from publishers for the development of Alan Wake 2 and the remake of Max Payne 1&2. However, the royalties from Control decreased compared to the same period in the previous year and Alan Wake Remastered and Crossfire still haven't paid off.
The operating loss in the second quarter amounted to €2.4 million. The studio attributes this to "significant external development expenses" as the studio now has more projects, which are partially funded by its own resources. Based on the quarterly results, Remedy lowered its revenue and operating profit outlook for 2022 due to lower-than-expected game royalties in 2022.
The company also shared that work on Alan Wake 2 is progressing well and the release of the game is still scheduled for 2023. "The Alan Wake 2 team is at its peak size, and game production continues at full speed on all fronts," Virtala said.
The development of the Control spin-off, codenamed Condor, is also on track. The company shared that the project is steadily moving from the proof-of-concept stage to the production readiness stage. Meanwhile, the project codenamed Heron which is going to be a bigger-budget Control game is still in the concept stage.
"At the moment, we are keeping the development team small and giving it time to fine-tune the game concept before expanding the team and taking the project to the proof-of-concept stage," said Virtala.
As previously reported, the online PvE shooter codenamed Vanguard, will not enter active development in 2022 – this phase has been moved to 2023. The fact that the company lowered its finical outlook for 2022 is also connected to the decision to "take extra time" for the development of the game.
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