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[cormack12]

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.

 

[TrueLegend]

It will get there. It is well made but it is not a game for everyone and is definitely not for you if you seek combat.

 

[Mister Wolf]

Good game. Not being on Steam hurt its sales potential tremendously.

 

[StueyDuck]

Good for them but wasn't this epics baby?

You'd think with all that fortnite money they'd be alright

 

[Kotaro]

how is it a success if you still haven't made money out of it after one year?

sales must be trickling and discounted by now

 

[mckmas8808]

Good game. Not being on Steam hurt its sales potential tremendously.

100%!!!! Being on Steam would have had this game making profit by now.

 

[Kokoloko85]

How can it be a continued success if it hasnt recouped costs?

 

[Herbspiceguy]

Nearly breaking even after a year of release is a success?

 

[Kacho]

We're almost there guys. A huge success.

 

[HogIsland]

Good game. Not being on Steam hurt its sales potential tremendously.

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.

 

[s_mirage]

how is it a success if you still haven't made money out of it after one year?

sales must be trickling and discounted by now

Yeah, I was about to say. It's a bit premature to call it a success when so far it's generated no profit.

 

[kazuyamishima]

Steam + Physical PS5 version are helping.

 

[Denton]

Year after release and still in the red. I am sure it will get into black eventually, but this is still a commercial flop.

 

[ElFenomeno]

Ouch but deserved.

 

[tommib]

Year after release and still in the red. I am sure it will get into black eventually, but this is still a commercial flop.

It’s their fastest selling game and close to being their main source of revenue. Relax.

 

[Heaven Angel]

Alan Wake 2 was fantastic. I want more of those from Remedy.

 

[Denton]

It’s their fastest selling game and close to being their main source of revenue. Relax.

Oof. That's just sad.

 

[lh032]

thats sad.

 

[Men_in_Boxes]

100%!!!! Being on Steam would have had this game making profit by now.

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.

 

[Senua]

Steam release when

 

[MarV0]

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.

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.

 

[HogIsland]

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)?

Plus that game also had 1 year Epig exclusivity.

Capital Markets Day 2020 - Remedy Investors

investors.remedygames.com

 

[devutos]

Remedy is a public company.

Their stock price crashed by 50% after AW2 release and hasn't recovered since. Pretty obvious the game flopped.

 

[tmlDan]

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

 

[Men_in_Boxes]

Epic didn't give them an exclusivity check, they funded AW2 development but those costs are still to be fully recouped.

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?

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.

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.

 

[YOU PC BRO?!]

I wonder if they retrospectively regret the Sweet Baby Inc. involvement?

 

[winjer]

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.

 

[SonGoku]

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]

Why they didn't release it on Steam?

 

[Denton]

Why they didn't release it on Steam?

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.

 

[HogIsland]

Why they didn't release it on Steam?

epig owns it. it's not a timed exclusivity agreement like control or alan wake remastered. it's the same question as why arrowhead didn't release helldivers on xbox.

 

[SonGoku]

Epic obviously gave them a deal they believed to be superior to releasing on Steam

and yet they are just now 1 year later starting to break even, despite Epics deal

 

[Senua]

I wonder if they retrospectively regret the Sweet Baby Inc. involvement?

Basically irrelevant to it's sales

 

[Kacho]

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.

Look at the descriptions of the authors

 

[Ulysses 31]

Almost breaking even is not a financial success.

 

[hyperbertha]

We can almost stop starving now. Big success.

 

[intbal]

Today is the first day after Halloween.
I'm betting sales completely bottom out for the next eleven months.

 

[nowhat]

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.

 

[SEGAvangelist]

Glad to see this game failing. Remedy deserves it.

 

[Men_in_Boxes]

and yet they are just now 1 year later starting to break even, despite Epics deal

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?

 

[Giallo Corsa]

Alan Wake 2 was fantastic. I want more of those from Remedy.

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.

 

[Windom Earle]

epics baby

It was also Sweet Baby's baby.

 

[Giallo Corsa]

Glad to see this game failing. Remedy deserves it.

Oh the edge...I almost cut myself man

 

[VolticArchangel]

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.

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).

 

[StreetsofBeige]

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.

 

[Rush2112]

Yeah I’m not buying from epic store no matter what.

 

[AJUMP23]

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.

 

[xrnzaaas]

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.

 

[StreetsofBeige]

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.

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.

 

[Deerock71]

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.