Exciting times are unfolding at Remedy Entertainment, but not without some challenges. The developer known for hits like Control and Alan Wake is facing a major shakeup. CEO Tero Virtala has stepped down, making way for interim CEO Markus Mäki, amidst financial setbacks and disappointing sales of their latest venture, FBC: Firebreak.
Financial Woes and Leadership Changes
The company’s recent quarterly earnings report painted a challenging picture. Remedy disclosed a €14.9 million ($17.4 million) impairment charge, reflecting the majority of development costs for FBC: Firebreak, alongside purchased publishing and distribution rights. In light of these developments, Remedy’s revenue plummeted by 32% year-over-year, settling at €12.2 million ($14.2 million). The decline was attributed to reduced development fees, a stark contrast to the previous year’s income from projects like Control 2 with Annapurna. The company revised its revenue expectations, now foreseeing revenue growth but a negative operating profit.
CEO Transition Amidst Shifting Focus
Markus Mäki, Remedy’s board chairman, has temporarily taken the reins as CEO following Virtala’s resignation after nearly a decade in the role. Henri Österlund steps in as the new board chairman. Mäki’s message to investors emphasized the studio’s commitment to refining player experiences and maintaining a shared roadmap for Firebreak, although resources are being redirected. He highlighted some positives from Firebreak’s launch, particularly its technical success and the strengthened capabilities of Remedy’s publishing team for self-published titles.
The Mixed Journey of FBC: Firebreak
FBC: Firebreak marks Remedy’s foray into self-publishing, and while it achieved technical milestones, commercial performance fell short. Reports suggest the game underperformed on platforms like Steam, leaving the company unsatisfied. Recent earnings indicate that updates like Breakpoint only slightly boosted sales. FBC: Firebreak’s reception illustrates the hurdles Remedy faces as it navigates the competitive gaming landscape.
Nonetheless, some reviews, such as a 6/10 rating, describe FBC: Firebreak as an engaging co-op shooter that lacks the depth for long-term interest.