Paradox's operating profit plummeted by 162% compared to the previous year, resulting from a write-down on Vampire: The Masquerade Bloodlines 2

Paradox Interactive, a game development company based in Sweden, announced a significant drop of 162% in operating profit for the quarter ending December 31, 2025, primarily due to the underperformance of the game Vampire: The Masquerade – Bloodlines 2.

Image credit: Paradox Interactive

Financial Overview

Quarter ending December 31, 2025

Revenue: SEK 874.8 million ($98.7 million), showing a 23% increase from the previous year
Operating loss: -SEK 245.4 million (-$27.7 million), representing a 162% decline year-on-year

For the entire year of 2025

Sales: SEK 2.2 billion ($248.3 million), maintaining the previous year's level
Operating profit: SEK 146 million ($16.5 million), an 80% drop compared to the prior year

Key Highlights

Paradox Interactive had to acknowledge a write-down cost of SEK 355.3 million ($40.1 million) associated with Vampire: The Masquerade – Bloodlines 2. CEO Fred Wester remarked that the game failed to meet their commercial targets, contributing to the overall operating loss of SEK 245.4 million ($27.7 million).

Nevertheless, Paradox saw its fourth-quarter revenue climb to SEK 874.8 million ($98.7 million), up by 23% compared to the previous year. This boost was attributed to the success of Europa Universalis V, which launched on November 4th, produced by the Tinto studio of Paradox.

For the full year of 2025, Paradox generated SEK 2.2 billion ($248.3 million) in sales, reflecting a slight decline of 0.4% year-over-year. The annual operating profit stood at SEK 146 million ($16.5 million), marking a significant 80% fall.

Wester termed the fourth quarter as the company's "most intense" period historically, indicating a shift in focus towards strengthening strategic missions in the future. The period saw two new games released, a remaster, and various DLCs, underpinning the organization's capabilities.

"Despite some challenges, such as unfavorable currency rates and the financial impact of Vampire: The Masquerade – Bloodlines 2, the company intends to enhance its strategic direction, relocate resources, and create better conditions for future endeavors," Wester stated.

The standout event of the quarter, according to Wester, was the introduction of Europa Universalis V. This franchise, crucial to Paradox's history, evolved from a niche product 25 years ago to a prime example of enduring games with dedicated communities. The release cements the series' legacy and sets a solid footing for future projects.

Initially developed by Hardsuit Labs after Paradox's 2015 acquisition of White Wolf, Vampire: The Masquerade – Bloodlines 2 shifted developers in 2021 when Hardsuit Labs was dropped. By 2023, UK-based The Chinese Room took the helm of the project.