Alan Wake 2 has recouped most of its development and marketing expenses

Remedy has confirmed that Alan Wake 2 has recouped "most" of its development and marketing costs around a year after it launched. The Finnish studio shared the news in its fiscal report for the third quarter ended September 2024 (Q3).

The company saw revenue increase by 128.6 percent to €17.9 million ($19.4 million) during Q3. Operating profit rose to €2.4 million ($2.6 million) over the same period, an upswing on the €5.5 million loss reported by Remedy this time last year.

Remedy CEO Tero Virtala noted that development costs have risen year-on-year, largely driven by Control 2 and Max Payne 1&2 Remake. He stated that Remedy is making "steady progress" as it works to expand its game portfolio with the launch of multiplayer Control spin-off FBC: Firebreak and move into self-publishing with the backing of Annapurna Pictures.

"Our games in development progressed as planned during the quarter. In August, we made a strategic partnership agreement with Annapurna Pictures, which ensures we can develop Control 2 into a great game. It also allows us to move into self-publishing and expand our game franchises to other mediums such as television and film," said Virtala.

"At the end of the quarter, Alan Wake 2 had recouped most of its development and marketing expenses. After the end of the quarter, the second expansion of Alan Wake 2, The Lake House, was released on October 22 alongside the Physical Deluxe Edition of the game. FBC: Firebreak, previously codename Condor, continues in full production with a focus on iterating on the core loop and implementing more of the UI (user interface) for more player clarity based on playtesting feedback."

Control 2 is in the "production readiness stage" and remains on track to enter full production in 2025. Virtala noted many of the sequel's critical features have already been implemented to mitigate risk, and workflows and pipelines are being tested ahead of time. Max Payne 1&2 Remake remains in full production and is making "steady progress."

Discussing Remedy's partnership with Annapurna in more detail, Virtala said the deal secured 50 percent of the production budget for Control 2. It will also enable Annapurna to develop movies and television shows based on Alan Wake and Control.

As for Remedy's recent loan agreement with Tencent, Virtala stated that move will strengthen the studio's position in the value chain and grant it more control over how its projects are commercialised. Looking ahead, Virtala said expanding the interconnected Control and Alan Wake franchises will be "key" to the studio's future.