Alan Wake 2 recoups majority of dev costs as Remedy reports H1 revenue rise

Remedy has released its financial results for the first half of 2024, reporting increased revenue and “improved profitability” compared to the same period last year.

He also announced that while Alan Wake 2 has yet to generate any royalties, the game has recouped most of its development and marketing expenses since its release last October.

The numbers

Second quarter of 2024:

  • Revenue: 10.3 million euros (+16.2%)
  • Operating loss: €3.2 million (compared to an operating loss of €4.8 million in the same quarter of the previous year)

First half of 2024:

  • Revenue: 21.1 million euros (+33.7%)
  • Operating loss: €5.3 million (compared to an operating loss of €10.4 million in 2023)

Highlights

The main source of income was development fees from the remake of Max Payne 1 and 2, which is being developed by Remedy and funded by Rockstar, plus royalties from Control and Alan Wake Remastered.

CEO Tero Virtala said the cancellation of the Kestrel codename in May “brought greater focus and better development synergies,” resulting in the company being able to move developers onto other game projects.

During this time, the Max Payne 1 and 2 remakes have entered full production, while Control 2 and the Control multiplayer spin-off, codenamed Condor, have progressed to the production readiness stage.

In February, Remedy acquired full rights to the Control franchise from 505 Games for €17 million.

The report also included results for the three months ending June 2023, when Alan Wake 2's Night Springs expansion was released.

Revenue for the period increased by 16.2% to €10.3 million, with operating profit down to €3.2 million.

“With full control of the IP and publishing rights for Control and Alan Wake, we can choose how to bring future games to market,” Vitala said. “We have been looking into self-publishing and other related business models, as well as discussing publishing opportunities with partners.

“We are preparing to take on a larger role in the growth of both franchises and especially in the way we market, publish and release our games.”

Vitala stressed that the growth of its Alan Wake and Control franchises is a “key part of Remedy's future,” and had formed a new development team to manage and support its portfolio of games.

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