Paradox Interactive shuts down two studios behind Crusader Kings 3 and Stellaris DLCs

Paradox Interactive has announced the closure of two Swedish offices as part of a planned restructuring to move away from decentralized game development. As a result, 36 people will be laid off.

Crusader Kings III

What happened?

• As reported by Game Developer, Paradox will close its studios in Umeå and Malmö during 2023 to consolidate game development in Stockholm.
• The Swedish publisher noted that this restructuring won’t affect its operations and offices in North America and the rest of Europe.
• “We’ve concluded that our current set-up with decentralized development of our active franchises across our studios in Sweden is not the best long-term structure for us,” the company said in a statement.
• A Paradox spokesperson added that narrowing down its operations to fewer locations would be a better option in the long term.
• Last year, the company launched Paradox Arc, a new publishing label aimed at smaller games with unique designs and high replayability.
• Paradox is now focused on developing its key brands, including Crusader Kings, Stellaris, and Cities: Skylines. That’s why in October 2021, the publisher canceled several unannounced projects worth roughly $15 million to reallocate “resources and expertise on its proven game niches and projects that better meet the company’s requirements on returns and risk.”

What is known about the closed studios?

• Paradox Arctic was a Umeå-based studio founded in 2014. It initially employed around 20 people, but two years ago the company decided to double the headcount. Arctic was primarily focused on supporting Stellaris, having developed DLCs like Overlorld and Aquatics.
• Paradox Thalassic was a Malmö-based team founded in 2017 to develop mobile titles based on the company’s franchises. However, it only contributed to several expansions to Crusader Kings III, including Royal Court and Fate of Iberia.

The closure of the two support studios, Arctic and Thalassic, means that Paradox will now move all the  work on CK3 and Stellaris to its main Stockholm office, Paradox Development Studio.

Right now, the company operates six subsidiaries:

• Netherlands-based Triumph Studios — the Age of Wonders franchise;
• Spain-based Paradox Tinto — Europa Universalis IV;
• Finland-based Iceflake Studios — Surviving the Aftermath;
• France-based Playrion Game Studio — mobile developer (Airport Simulator, Airlines Manager);
• Seattle, Washington-based Harebrained Schemes — the Shadowrun franchise;
• California-based Paradox Tectonic — upcoming life sim game Life by You.