"We are ending the quarter with mixed feelings," says Paradox Interactive, as their operating profit fell by 90%
Paradox Interactive released its report for the second quarter of 2024. The cancellation of the life simulator Life by You had a significant impact on the company's finances.
Life by You
Below are the key points from the report.
- Compared to the previous year, Paradox Interactive's revenue fell by 22%. It amounted to 575.8 million SEK (53.1 million USD).
- PC games generated the vast majority of the company's revenue — 87%. Console games contributed another 9.7%, while mobile games accounted for 2.3%.
- The company's operating profit dropped by 90% year-over-year to 28.9 million SEK (2.67 million USD).
- Paradox Interactive cited the cancellation of Life by You as the reason for such a steep profit decline. With the game's cancellation, the company had to write off development expenses amounting to 208 million SEK (19.18 million USD).
- Paradox Interactive CEO Fredrik Wester expressed mixed feelings about the quarter's results. On one hand, the company's metrics took a hit due to the cancellation of Life by You. On the other hand, the expansions released during the quarter for its major hits (Age of Wonders 4, Stellaris, Victoria 3, and others) performed very well.
