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Alan Wake 2 is still not profitable | Other Remedy Financial Reports (approx 80% of costs recouped)

Draugoth

Gold Member

remedy-q2-report.jpg

Financial highlights​


  • According to its H1 report, Remedy reached €10.3 million in revenue in the second quarter, up 16.2% year-over-year. Its first-half revenue grew 33.7% to €21.1 million.
  • Operating loss was €3.2 million, an improvement from €4.8 million in Q2 2023. H1 loss reached €5.3 million, compared to €10.4 million in the same period last year.
  • Development fees from partners were the main source of revenue in the second quarter, accounting for 91% of the total. This is mainly to higher fees from the Max Payne 1&2 remake, which is developed in partnership with Rockstar.
  • Royalties from sales of already released games (mainly Control and Alan Wake Remastered) amounted to just €912k in Q2.

Remedy has yet to see revenue from Alan Wake 2​


  • According to CEO Tero Virtala, Alan Wake 2 “did not yet generate royalties.”
  • The game was fully funded by Epic Games, and Remedy will be entitled to 50% of net revenue after the Epic fully recoups its investment. As of February 2024, AW2 sold 1.3 million copies globally, meaning it was still not enough to generate revenue for the studio.
  • In March, Virtala told investors that Alan Wake 2 “has already recouped a significant part of the investments made by Epic Games Publishing, and we expect the game to be a meaningful revenue and profitability driver for the year.”
  • The game’s budget remains undisclosed, but Finnish analysts estimated the total at €70 million, of which €50 million were development costs.
 
So, selling out to Epic for exclusivity isn’t worth it? Maybe future developers will take note of this.

Imagine selling HALF of your revenue to an inferior platform. They must have been absolutely desperate for cash.
 
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RedC

Member
I think this game is one of the very few examples where the 'woke' features did not influence on the overal sales, rather this was Remedy's extremly poor decision to make this Epic and digital exclusive.
I think it has far less effect on overall sales of games than people claim relative to the other variables that likely had more effect.

It's just so lazy to consistently see people flatten or reduce it simply to this one variable.
 

Little Mac

Gold Member
Never played the first game nor its sequel. Im sure the first Alan Wake was a good game but was it a franchise starter? Nah, or I probably would have played it instead of something else. Same with games like Senua. Not sure why AA games that sold average at best are getting these huge development budgets in hopes that their sequels find more mainstream success. Like who wants to buy a sequel to a game that they never played. Maybe I alone on this one.
 

King Dazzar

Member
I passed on it. Mixed reasons why. Didn't come across as a great experience, especially on console. As a tech show case for some on PC, you'd have thought it would have done well if on Steam. Will it come to Steam in the future or is it locked to Epic store for ever?
 

Bojji

Member
Never played the first game nor its sequel. Im sure the first Alan Wake was a good game but was it a franchise starter? Nah, or I probably would have played it instead of something else. Same with games like Senua. Not sure why AA games that sold average at best are getting these huge development budgets in hopes that their sequels find more mainstream success. Like who wants to buy a sequel to a game that they never played. Maybe I alone on this one.

Alan wake was 7/10 but for some reason it was treated like 9/10. Remedy as a whole is over hyped in my opinion.

Control was good and AW2 is ok, it has some amazing moments but also a lot of dull ones.
 

sankt-Antonio

:^)--?-<
I think it has far less effect on overall sales of games than people claim relative to the other variables that likely had more effect.

It's just so lazy to consistently see people flatten or reduce it simply to this one variable.
Played the first 30min at a friends.

What I got from the game:
- White fat dude run's around the woods naked, delusional, gets killed.
- New protagonist gets an exposition dump from her partner, how great she is, and how legendary her work is in the force. She's IN YOUR FACE AWESOME, get it!? Good.
- Followed by a visit to a literal retard police officer. You first hear his retard voice, but I wonder how the officer looks like... oh of course hes a white male.

Its Netflix level of low budget story telling and pandering. It's unnecessary and played out at this point.
 

RedC

Member
This is a company that lives and dies on partnership funding.

If this company ever tried going it's own way making their own IPs and doing their own thing they'd be broke in a year.
Exactly and I love Remedy games.

There's a reason Microsoft stopped partnering with them after Alan Wake and Quantum Break.
 

The Cockatrice

Gold Member
Alan Wake a game where half the game you play as a black woman. Digital only. Exclusive to a platform thats pretty much dead when it comes to singleplayer player base. Remedy is not very smart when it comes to these decisisions. Control was in the same boat and so was Quantum Break. Sam and the other 2 CEO's need to go. Bungie and many other companies got fucked by their leaders.
 

Humdinger

Member
The woke elements turned me off, but I haven't been a fan of Remedy since the Max Payne days, so I wasn't all that interested to begin with. From what I saw of the game, there were numerous weaknesses beyond the forced diversity (e.g., lack of interesting action, long cinematic segments where you have no real control, the detective board, etc.). Glad it isn't doing well. Hopefully they won't waste time with a third game.
 

Jigsaah

Gold Member
I bought it. Wasn't disappointed. This is too bad. I generally like Remedy games. They always have unique ideas that I'm willing to try, hit or miss. I hope they can keep taking these kind of risks.
 

ShirAhava

Plays with kids toys, in the adult gaming world
simpsons-mr-burns.gif


Happy to see terrible games not doing well. Alan Wake has always sucked
the fact that a game like that got a sequel is embarrassing. The cope that not
being on steam is holding it back is laughable. Most people don't want to play this tripe
it being woke is the least of its problems. fuck. this. game.
 

tkscz

Member
Sounds like it's filled with all kinds of bad ideas to me. An estimated budget of $90 million, being exclusive to the epic game store, depending on a single game to help fund you through an entire year.

Sounds like bad leadership to me.
 

StreetsofBeige

Gold Member
Sounds like it's filled with all kinds of bad ideas to me. An estimated budget of $90 million, being exclusive to the epic game store, depending on a single game to help fund you through an entire year.

Sounds like bad leadership to me.
An Alan Wake game costing $90M to make. Absurd.
 

SJRB

Gold Member
I wonder what lessons they could learn from this, if any. Not releasing on Steam was probably not a good tactical decision even if the Epic money injection floated a lot of development cost. No physical release didn't help either.

All of this wouldn't be an issue if the game itself was incredible but unfortunately it isn't really. I never finished it because I actually got kind of bored which is a huge problem in a paranormal murder mystery. Game looked amazing and the production value is insane but all of that doesn't make a boring game any less boring.
 

FingerBang

Member
Ruining the topic of why the game sold shit? :unsure:

Why did the game do shit?

[...]

Utterly fucking boring to read that people still don't get it when the evidence is so apparent and blatent it fucking hurts.
It might shock you, but many people have played the game and don't find it more "woke" than the average game and consider it a good game. I'm one of them.

Yes, SBI probably affected the skin color of the protagonist and some of the dialogues, but overall, the game is not trying to fight capitalism or white supremacism nor trying to stress that fat, trans people of color need to be deified. I'd also add that no one fucking knew what SBI was when the game came out, so no, it didn't flop "because woke." It's likely it flopped because the game cost relatively a lot to make (for the cutting edge graphics); it was Epic exclusive and digital only.
 
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M1chl

Currently Gif and Meme Champion
I am really unhappy that we are in some fucked up reverse 2014, where people still attack games by their political leaning of creators, it was annoying then, its annoying now.

The reality of course is really simple, it was badly written game, with so much meta and self reference, that its pretty much impossible to follow, much less enjoy the game...
 
I loved Alan Wake but the things I'm hearing about 2 have made me put it on my backlog until it's at least $25 or cheaper. I wont risk wasting my money. With that said I've really liked every single game they've put out since AW. So maybe I'm just being paranoid.
 
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