Alan Wake II Finally Profits, But Remedy Still Struggles

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After over a year since its release, “Alan Wake II,” one of Sweet Baby Inc.’s well-known gaming titles, has at last begun to generate profits. Yet, despite this success, its developer, Remedy – who remains a collaborative partner with SBI – is still operating at a loss.

The multifaceted debate surrounding “Alan Wake II” centered significantly around two key points. Firstly, it involved the appointment of Sweet Baby Inc., who were tasked with crafting the storyline for the game by Remedy Entertainment.

Sweet Baby Incorporated is generally recognized for its detrimental influence within the gaming sector. This “consulting firm” allegedly assists developers in creating more diverse games, but in reality, they embed their agendas into the games they collaborate on. For instance, titles like God of War: Ragnarök, Spider-Man 2, Assassin’s Creed: Valhalla, Kill The Justice League, and Alan Wake II are some instances where this has been observed.

In expressing my admiration for Sweet Baby Inc., I must acknowledge their significant impact on the gaming world. Their popularity seems to have discouraged many gamers from purchasing the sequel title, leading to disappointing profits for Remedy Entertainment. Faced with dwindling sales, the studio attempted an unconventional approach by using bots to boost game promotion – a strategy that ultimately failed them. Analyzing their financial reports post-release, it appears that the company has yet to recover any substantial profits from this game.

Now, after more than a year, it seems that Remedy is finally recouping some of those losses.

Based on Remedy’s latest financial report released at the end of 2024, the company is now earning royalties from the release of Alan Wake II. The report further disclosed that over 2 million copies of the game were sold by the end of Q4. For the year 2025, they anticipate both revenue and profit to rise compared to the previous year, with an expectation for a positive operating profit.

Remedy Entertainment CEO Tero Virtala made the following in the statement:

During the last three months of 2024, our revenue surged by 13.1% year-on-year to reach approximately EUR 11.7 million. This growth was primarily fueled by increased development fees, particularly from the Max Payne 1&2 Remake and Control 2 projects. Unfortunately, royalties saw a decline compared to the previous period.

By the end of 2024, Alan Wake II had recovered both its development costs and marketing expenses, which means that Remedy started receiving royalties towards the end of the quarter. In the fourth quarter alone, our operating loss reduced significantly by EUR 11.4 million compared to the previous period. It’s important to note that in the earlier period, we had an impairment loss of EUR 7.2 million on a project codenamed Vanguard.

Simply put, during Q4 2024, Remedy saw a 13.1% jump in earnings, amounting to approximately €11.7 million. The primary reason for this growth was income from development fees related to the Max Payne 1&2 Remake and Control 2. However, royalties fell short compared to the previous year. Interestingly, despite SBI’s involvement, Alan Wake II managed to cover its production and promotional costs, implying that any future sales will bring in profits. Nevertheless, Remedy still posted an operating loss of €1.4 million for the quarter, which is a significant improvement compared to the €11.4 million deficit from the previous year. This reduction was partly due to a €7.2 million impairment loss on a project known as Codename Vanguard, which might indicate financial troubles or a major change in that project’s direction.

In other words, Remedy is almost profitable. However, they might not be for long.

As a passionate moviegoer and gaming enthusiast, I’ve got some intriguing news to share about the future collaborations within the gaming industry. Rumors swirl that Remedy Entertainment, the powerhouse behind critically acclaimed games like Max Payne and Control, is still in cahoots with Sweet Baby Inc. If these reports are accurate, it’s worth pondering what this alliance might mean for Remedy’s financial future.

Sweet Baby Inc., as we all know, has a significant impact on gaming profits. While their partnership could undeniably bring innovative ideas and resources to the table, it’s equally important to consider the potential downsides. If the past is any indication, Remedy may find themselves facing more losses than gains in the future due to Sweet Baby Inc.’s influence.

Of course, this is all speculation at this point. Only time will tell how this partnership unfolds and what it means for Remedy Entertainment’s future projects. Until then, fellow gamers and I eagerly await updates on their upcoming games!

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2025-02-23 01:55