Remedy calls 2023 financially 'challenging', despite Alan Wake II's success

Remedy posted its financials for the full 2023-2024 fiscal year. Decreases were across the board, but the Finnish studio had a bright spot in locking down two franchises under its belt.

Speaking to revenue from October 1, 2023-December 31, 2023, Remedy made €10.3 million ($11.19 million) during the period. In 2022-2023, it made €13.6 million, marking a 24.4 percent decrease between the two quarters.

For the whole 2023 year, revenue decreased €33.9 million, down 22.2 percent from 2022's €43.6 million.

Despite that, CEO Tero Virtala noted 2023's final quarter was "special and memorable" for Remedy. That's largely owed to Alan Wake II, which released in October to strong reviews and numerous award wins and nominations.

He acknowledged the studio's profitability and revenue in 2023 were affected by "increased investments" in its other projects, plus €7.2 million in impairment charges for Project Kestrel (formerly Vanguard).

Progress on the free-to-play Kestrel was "promising," but still wasn't reaching its full potential. All development costs were written off, and the Tencent-backed project return to the concept phase.

Remedy looks to Alan Wake and Control to determine its future

As of this past February, Alan Wake II has sold 1.3 million copies to become Remedy's fastest-selling title ever. Virtala noted sales started strongly despite the competitive fall 2023 games season, and its overall cadence of strong releases.

Citing the long-term success of Remedy's 2019 game Control, he said a "great quality game can have excellent longtail sales and we expect this to be the case with Alan Wake II."

Speaking of Control, Remedy secured that game's full rights from 505 Games in February. The supernatural action game has, as of that month, sold 4 million copies.

Per Virtala, Remedy's ultimate endgame for Alan Wake and Control is to make them franchises with "high brand recognition, steadily growing user base, more regular cadence of sequels and an ability to generate revenues and profits at a high level."

The Control franchise and Remedy's plans for it have grown since 2019, he continued. The studio is exploring both a "different business model" and a new partner for the sequel, and presumably its co-op spinoff, Project Condor.

Development progress on Condor, plus the Max Payne remakes, should reach its next stages in 2024's first half. Virtala expects this to be "an exciting year of growth for Remedy.

Remedy's full write-up of the 2023-2024 fiscal year can be read here.