Remedy Entertainment's CEO has resigned, leaving the new CEO of the developer of Control and Alan Wake to reassure investors after weak sales of FBC: Firebreak left the company significantly lowering its revenue expectations for the year and writing off the game's development costs.
In its quarterly earnings report issued today, Remedy revealed that it recognized a €14.9 million ($17.4 million) impairment charge representing most of the development costs as well as purchased publishing and distribution rights for FBC: Firebreak.
In total, Remedy's revenue decreased 32% year-over-year, to €12.2 million ($14.2 million). Remedy says this was largely driven by lower development fees coming in than last year at this time, during which it received revenue from Annapurna related to development work it did on Control 2. Remedy also revealed that it was revising its revenue expectations for the year: while previously Remedy expected revenue and operating profit to increase year-over-year and be positive, it now expects revenue to increase, but its operating profit to decrease and be negative. No exact numbers were shared.
Alongside this, CEO Tero Virtala has stepped down after nine years in the position. He is succeeded in the interim by board chairman Markus Mäki, who has stepped down from his chairman role and been replaced by Henri Österlund.
In comments by Mäki shared with investors, he stated that while Remedy would continue "working on features which enhance player value" and would keep true to its shared roadmap for Firebreak, the studio has moved development resources elsewhere going forward. Mäki also attempted to reassure investors that Firebreak was not a total loss:
"We have also found positive sides from FBC: Firebreak," he said. "Our first multiplayer product launch was technically successful in a cross-platform environment, and our publishing team has built capabilities which support the releases of our future self-published titles."
FBC: Firebreak was Remedy's first ever self-published game, and while the studio claims it technically succeeded, it also admitted last quarter that it "underperformed" on Steam and that the company was "unsatisfied" with its commercial reception. In today's earnings, Remedy stated that Breakpoint improved the game's sales only "marginally."
We gave FBC: Firebreak a 6/10, saying that it was a "compelling co-op shooter that, despite its good looks, doesn't have the depth to keep things interesting long-term."
Rebekah Valentine is a senior reporter for IGN. You can find her posting on BlueSky @duckvalentine.bsky.social. Got a story tip? Send it to rvalentine@ign.com.
