Remedy has recouped 'most' of the development and marketing costs of Alan Wake II

cormack12

cormack12

Gold Member
Source: https://www.ign.com/articles/remedy...opment-and-marketing-expenses-for-alan-wake-2

Alan Wake 2 continues to be a success for Remedy, with the company reporting today it has recouped "most" of the development and marketing cost of Alan Wake 2 as of the end of September.

In its quarterly earnings today, Remedy reported that while the game is not yet generating royalties, it's close to fully recouping costs thanks to continued strong sales.
 
Mister Wolf said:
Good game. Not being on Steam hurt its sales potential tremendously.
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truly devastating. if it was on steam, it would've been a big hit for real.

gta6 will obviously be successful, but launch sales will take a noticeable hit due to skipping steam.
 
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Year after release and still in the red. I am sure it will get into black eventually, but this is still a commercial flop.
 
mckmas8808 said:
100%!!!! Being on Steam would have had this game making profit by now.
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Not likely.

Epic obviously gave them a deal they believed to be superior to releasing on Steam. Forum goers must understand that the people at these companies know how the market works. Steam and its impact is not a foreign entity to Remedy.
 
Men_in_Boxes said:
Not likely.

Epic obviously gave them a deal they believed to be superior to releasing on Steam. Forum goers must understand that the people at these companies know how the market works. Steam and its impact is not a foreign entity to Remedy.
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Epic didn't give them an exclusivity check, they funded AW2 development but those costs are still to be fully recouped.

The fact is without Epic AW2 might have never been made but if and that's a big IF they had found another source of funding, which would have allowed a Steam release, then they would easily be making profit by now.
 
How can 1.3M be the fastest selling Remedy game when they told investors in 12/2020 that Control sold over 2M (launched 11/2019)?

Screenshot-2024-11-01-at-10-08-00-AM.png


Plus that game also had 1 year Epig exclusivity.

investors.remedygames.com

Capital Markets Day 2020 - Remedy Investors

investors.remedygames.com
 
Remedy is a public company.

Their stock price crashed by 50% after AW2 release and hasn't recovered since. Pretty obvious the game flopped.
 
I did not like this game, but i dont wish them failure because its not terrible.

Hope they recoup the entirety of costs over time
 
MarV0 said:
Epic didn't give them an exclusivity check, they funded AW2 development but those costs are still to be fully recouped.
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Wait...what? Epic DIDN'T give them an exclusivity check but they funded the entire game and it was an Epic Store exclusive on PC?

MarV0 said:
The fact is without Epic AW2 might have never been made but if and that's a big IF they had found another source of funding, which would have allowed a Steam release, then they would easily be making profit by now.
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I'm pretty sure Remedy did this math prior to making the game and believed Epic gave them the best chance of financial success. Unless I'm not fully understanding your point.
 
So they still haven't recovered the investment costs on this game, but IGN portraits this as a success.
How can gaming journalists be so disingenuous.
 
Even if they broke even, I cant imagine breaking even as any type of success when time in itself is an asset and money just sitting there for however many years development took is a loss opportunity.

Game development is a business that should return profits if not might as well just put the money in the bank for x amount of years for interests
 
SweetTooth said:
Why they didn't release it on Steam?
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Because Epic fully funded it as a way to bring people to its store. It did not work of course, since even people who bought it there (like myself) never buy anything else there because it is a shitty low quality platform.
 
Good for them. They are a publicly traded company (albeit not very actively traded), so breaking even should be alright for the stockholders.

...who am I kidding, the stock will probably tank. But hopefully the company will stay afloat.
 
SonGoku said:
and yet they are just now 1 year later starting to break even, despite Epics deal
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The idea that going to Steam was sunshine and roses and the Epic Store was a dark graveyard is hilarious. "If only they considered the OTHER option!"

Why do gamers think they know how to run a company more than people who run successful companies?
 
Heaven Angel said:
Alan Wake 2 was fantastic. I want more of those from Remedy.
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Sure, I just hope they give us Control 2 first.

Talking about Control...man, what a great, atmospheric game, in fact, the sense of constant dread it exudes is bigger than that of "proper" horror games, absolutely loved it (both the main game + 2 DLCs), plus, in retrospect, it was way more game-y/had more actual gameplay than AW2.
 
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I have no interest in this game franchise, but before people start doomposting, this is important to note:

Alan Wake 2 continues to be a success for Remedy, with the company reporting today it has recouped "most" of the development and marketing cost of Alan Wake 2 as of the end of September.
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Meaning that it has almost recouped dev+marketing costs, by being only on digital storefronts and staying EGS exclusive, alone.

This doesn't take into account the new physical console sales, or the new DLC launch, which will obviously give a boost to the main game (for any critically acclaimed game in general).
 
Game has been out a year and still hasnt broke even yet on costs? Fail.

So Epic didnt cover full production costs? I guess it sounds like Epic covered a portion and the rest comes from sales.
 
That is rough, you need success in a game to pay for the next one. If I was the business office I would hate looking at those financials.
 
The wording in the article is wrong, it may be a critical success, but it's not a financial one if the game still isn't making a profit for the studio a year after release. It will be interesting to hear from Remedy in 2-3 months - retail release and the second DLC are the last chances to get a sales boost.
 
AJUMP23 said:
That is rough, you need success in a game to pay for the next one. If I was the business office I would hate looking at those financials.
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Its Remedy.

They'll find a way to partner up with a big publisher or e-store company for development costs to fund their game that will sell under 2M copies.
 
I can't imagine there's going to be an Alan Wake 3 with news like this. ALMOST clearing costs doesn't quite cut it when profit is your end-game.
 
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