Remedy CEO: "Short-term" 45% Q1 revenue decline sets the stage for long-term growth

As Remedy Entertainment shows declining revenue for early 2023, the Swedish studio is firmly focused on the release of Alan Wake II. 

In its financial report covering January-March, the developer reported €6.9 million (or $7.62 million), down 45.4 percent from the previous year. That decline was previously predicted, said CEO Tero Vitala, and reflective of the studio's current profitability. 

"Given the status of our games roadmap and the nature of our business," said Vitala, "quarterly variations in revenue and profitability are things that we must live with now and in the future." 

Vitala reasoned that the variation would be lessened once Remedy's projects released. Of the five, the closest to completion is Alan Wake II, which he said is "on its way to becoming a great game. [...] We have started the last major phase of full production to get the game ready for launch later this year."

Likewise, he expects fluctuating revenue to start once Remedy begins to release its future projects, along with royalties from the studio's back catalog. But like with the quarterly revenue, but he expects that variation will balance out over time.

The many futures of Remedy Entertainment 

Alan Wake II has been in a playable state from start to end since mid-February, and the team size will scale down when it gets closer to its presently unannounced release date.

Team members taken off that project will migrate over to one of the studio's other works like the remasters of Rockstar's first two Max Payne games or the free-to-play Project Vanguard. 

Speaking to the Control franchise, he said both Control 2 and the multiplayer-focused Project Condor, entered "steady progress" since they were concepted this past January. Both titles will expand the sci-fi series, which he said will "be one of Remedy’s cornerstones for years to come."

Each of Remedy's current projects, said Vitala, will provide the studio with long-term development fees that'll provide the studio "a strong and predictable revenue basis for many years."