Remedy Entertainment’s CEO has stepped down from his position. This comes after their game, FBC: Firebreak, suffered from poor sales, leading the company to drastically cut its revenue forecasts and write off the game’s development expenses. The new interim CEO now faces the challenge of reassuring concerned investors.
According to the quarterly earnings report released today, Remedy incurred a €14.9 million ($17.4 million) impairment charge. This figure accounts for the majority of FBC: Firebreak’s development costs, alongside its publishing and distribution rights.
FBC: Firebreak Official Breakpoint Update Trailer
Overall, Remedy’s revenue saw a sharp 32% year-over-year decline, settling at €12.2 million ($14.2 million). This dip was primarily due to a significant drop in development fees compared to the previous year, which had benefited from income related to their work on Control 2 for Annapurna. The company has also revised its financial outlook for the year. While earlier projections anticipated an increase in both revenue and operating profit, they now expect revenue to rise, but operating profit to fall into the negative. Specific figures for these revised forecasts were not disclosed.
Coinciding with these financial adjustments, CEO Tero Virtala has resigned after nine years at the helm. Markus Mäki, formerly the board chairman, has stepped in as interim CEO, with Henri Österlund taking over as chairman.
In a message to investors, Mäki affirmed that Remedy remains committed to “working on features which enhance player value” and upholding its established roadmap for Firebreak. However, he also noted that development resources would be reallocated to other projects moving forward. Despite the setbacks, Mäki tried to reassure stakeholders that Firebreak wasn’t a complete failure:
“We’ve also identified positive aspects from FBC: Firebreak,” Mäki commented. “Our debut multiplayer title successfully launched across multiple platforms, and our publishing division has gained valuable experience that will benefit our upcoming self-published games.”
This title marked Remedy’s first venture into self-publishing. While they assert the launch was “technically successful,” the studio previously acknowledged that the game “underperformed” on Steam and that they were “unsatisfied” with its commercial performance. Today’s earnings report further specified that a recent “Breakpoint” update only led to a “marginal” improvement in sales.
Our review of FBC: Firebreak awarded it a 6/10, noting it as a “compelling co-op shooter that, despite its good looks, doesn’t have the depth to keep things interesting long-term.”