Alan Wake 2 recoups majority of dev costs as Remedy reports H1 revenue rise
Finnish developer also says it has "improved profitability"
Remedy has published its financial results for the first half of 2024, and reported an increase in revenue and "improved profitability" compared to the same period last year.
It also announced that, while Alan Wake 2 has yet to generate royalties, the game has recouped most of its development and marketing expenses since its release last October.
The numbers
Q2 2024:
- Revenue: €10.3 million (up 16.2%)
- Operating loss: €3.2 million (compared to operating loss of €4.8 million for same quarter last year)
H1 2024:
- Revenue: €21.1 million (up 33.7%)
- Operating loss: €5.3 million (compared to operating loss of €10.4 million in 2023)
The highlights
The main source of revenue was development fees from the Max Payne 1 and 2 remake, which is being developed by Remedy and financed by Rockstar, in addition to royalties from Control and Alan Wake Remastered.
CEO Tero Virtala said the cancellation of codename Kestrel in May "brought increased focus and better development synergies" which has resulted in the firm being able to move developers to other game projects.
During this time, the Max Payne 1 and 2 remake entered the full production stage while Control 2 and the Control multiplayer spin-off codename Condor has progressed to the production readiness stage.
In February, Remedy acquired the full rights to the Control franchise from 505 Games for €17 million.
The report also included results for the three months ended June 2023, which saw the launch of Alan Wake 2's Night Springs expansion.
Revenue for the period rose by 16.2% to €10.3 million, with operating profit at a loss of €3.2 million.
"With full control of the IP and publishing rights to Control and Alan Wake, we can choose how to bring future games to the market," said Vitala. "We have been weighing self-publishing and related business models, as well as discussing partner publishing opportunities.
"We are preparing to take a more significant role in growing the two franchises and especially in the way we commercialise, market, and publish our games."
Vitala emphasised that the growth of its Alan Wake and Control franchises is a "key part of Remedy's future", and it had formed a new development team to manage and support its portfolio of games.