Paradox Reports Significant Profit Decline in the Last Quarter!

General news News 07/27/2024

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No wonder they canceled their Sims clone in development and then had the nerve to say “We end the second quarter with mixed feelings”.

So far Vampire: The Masquerade – Bloodlines 2 has caused a lot of headaches for the Swedish publisher (developer change), they got rid of Harebrained Schemes due to the poor performance of Lamplighters League, Cities: Skylines 2 fell far short of expectations, Millennia failed to live up to expectations, Life by You, the Sims clone, was canceled and the studio developing it was completely shut down by Paradox. No wonder their quarterly report sounds very negative…

Still, there was a profit. True, in the quarter from April 1 to June 30, it was down 88.5% from the same period last year, a profit of just 37 million kronor ($3.4 million). Crusader Kings 3, Victoria 3 and Hearts of Iron 4 managed to remain in the black, as did Age of Wonders 4, developed by Triumph Studios. The drop in profits was mainly due to the cancellation of Life By You: development costs were written off, amounting to approximately 208 million kronor ($19.2 million).

Fredrik Wester, CEO of Paradox, remains optimistic: “We end the second quarter with mixed feelings. On the one hand, our core business has performed very well, but on the other hand we made the difficult decision to cancel the release of Life by You, as the game would not meet our expectations. It is clear that we have made the wrong decisions on several projects, especially outside of our core business, and this needs to change. In 2021, we made significant changes to how we invest in riskier projects, meaning that we did not launch any new projects with the same combination of high risk and high cost as Life by You. In the midst of well-deserved self-criticism, it is worth reminding ourselves that we are on solid ground because the foundation of our business is strong. Despite the great annoyance of our own mistakes, we have faith. Paradox’s future is bright, but we need to roll up our sleeves and work hard to realize our full potential.”

Yes, but it will not be an easy year. Will Vampire: The Masquerade – Bloodlines 2 be of high quality?

Source: PCGamer, Paradox

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Angyal Anikó

Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)