Remedy moves to self-publishing as Alan Wake 2 has yet to generate royalties, reports 128% Q3 revenue growth
Remedy Entertainment has released its financial report for the third quarter of 2024. The Finnish studio posted strong revenue growth, also outlining its self-publishing strategy.
- According to its Q3 business review, Remedy reached €17.9 million in revenue last quarter, up 128.6% year-over-year.
- Operating profit was €2.4 million, compared to an operating loss of €5.5 million in the same period last year.
- Revenue growth was largely driven by higher development fees, including a one-time payment related to Control 2. In Agusut, Remedy entered into an agreement with Annapurna Pictures, which will fund 50% of the game’s development and receive rights for TV and film adaptations of the studio’s franchises.
- As of September 30, Alan Wake 2 had recouped most of its development and marketing costs, but the has yet to generate royalties for Remedy. Epic Games fully funded the project, and the Finnish studio will be entitled to 50% of net revenue only after it recoups its investment.
- This may be one of the reasons why Remedy wants to self-publish all of its games going forward. As CEO Tero Virtala pointed out, the company has been “building readiness towards self-publishing and more regular game releases” since acquiring full Control rights earlier this year.
- The self-publishing strategy will allow Remedy to receive 100% of net revenue from sales of its products, while financing them through partnerships with other companies (e.g. Annapurna or Tencent).
- The Finnish studio currently plans to self-publish both Control 2 and FBC: Firebreak, an upcoming co-op shooter expected to launch in 2025. The same goes for the next games in the Alan Wake series, to which Remedy also has full rights.
- Max Payne 1-2 remake is currently the only project in its pipeline that will be published by another company. The game, which is funded by Rockstar, is in full production.
- As for other products, Control 2 will enter full production in 2025, with Remedy saying that “many of the critical features of the game have been implemented to mitigate production risk, and workflows and pipelines are being tested in preparation for full production.”
