Following poor sales of FBC, the CEO of Remedy Entertainment resigned, leaving the new CEO of Control and Alan Wake to reassure investors: Firebreak caused the corporation to write down the game’s development costs and drastically reduce its revenue projections for the year.
Remedy disclosed in its quarterly results report today that it acquired the publishing and distribution rights for FBC: Firebreak and recorded an impairment charge of €14.9 million ($17.4 million), which accounted for the majority of the development costs.
Overall, Remedy’s income dropped 32% to €12.2 million ($14.2 million) from the previous year. According to Remedy, this was mostly caused by reduced development fees earned this year compared to last year, when it got money from Annapurna for the development work it completed on Control 2. Additionally, Remedy disclosed that it was changing its revenue projections for the year. Previously, Remedy anticipated that both revenue and operating profit would rise year over year and be positive; now, it anticipates that revenue will rise, but operating profit will fall and be negative. No precise figures were disclosed.
Additionally, after nine years in the role, CEO Tero Virtala has resigned. In the interim, Henri Österlund takes over as chairman of the board, replacing Markus Mäki, who resigned from his position.
While Remedy would continue “working on features which enhance player value” and adhere to its defined plan for Firebreak, Mäki told investors that the studio has shifted development resources elsewhere, moving ahead. Additionally, Mäki made an effort to reassure investors that Firebreak was not a complete failure:
Additionally, after nine years in the role, CEO Tero Virtala has resigned. In the interim, Henri Österlund takes over as chairman of the board, replacing Markus Mäki, who resigned from his position.
While Remedy would continue “working on features which enhance player value” and adhere to its defined plan for Firebreak, Mäki told investors that the studio has shifted development resources elsewhere, moving ahead. Additionally, Mäki made an effort to reassure investors that Firebreak was not a complete failure:
We also identified several positives from FBC: Firebreak,” he said. “Our first multiplayer launch performed well across platforms, and our publishing team gained valuable experience that will strengthen future self-published releases.
FBC: Firebreak marked Remedy’s first self-published title. Although the studio described it as a technical success, it acknowledged last quarter that the game “underperformed” on Steam and that its commercial results were disappointing. In its latest earnings report, Remedy noted that Breakpoint only slightly boosted sales.
We rated FBC: Firebreak a 6/10, calling it a “visually impressive co-op shooter that lacks the depth to stay engaging over time.”
