Alan Wake 2 is still not profitable | Other Remedy Financial Reports

[John Elden Ring]

Financial highlights​

• According to its H1 report, Remedy reached €10.3 million in revenue in the second quarter, up 16.2% year-over-year. Its first-half revenue grew 33.7% to €21.1 million.
• Operating loss was €3.2 million, an improvement from €4.8 million in Q2 2023. H1 loss reached €5.3 million, compared to €10.4 million in the same period last year.
• Development fees from partners were the main source of revenue in the second quarter, accounting for 91% of the total. This is mainly to higher fees from the Max Payne 1&2 remake, which is developed in partnership with Rockstar.
• Royalties from sales of already released games (mainly Control and Alan Wake Remastered) amounted to just €912k in Q2.

Remedy has yet to see revenue from Alan Wake 2​

• According to CEO Tero Virtala, Alan Wake 2 “did not yet generate royalties.”
• The game was fully funded by Epic Games, and Remedy will be entitled to 50% of net revenue after the Epic fully recoups its investment. As of February 2024, AW2 sold 1.3 million copies globally, meaning it was still not enough to generate revenue for the studio.
• In March, Virtala told investors that Alan Wake 2 “has already recouped a significant part of the investments made by Epic Games Publishing, and we expect the game to be a meaningful revenue and profitability driver for the year.”
• The game’s budget remains undisclosed, but Finnish analysts estimated the total at €70 million, of which €50 million were development costs.

 

[quest4441]

Ofc no one buys Alan Bore 2

 

[Johnic]

Give me that physical release later this year and you have my money.

 

[GachaMadeMeBroke]

Give me that physical release later this year and you have my money.

Yeah I’m hoping the physical gives it the boost in the arm it needs, this game deserves so much more sales. I’ll probably double dip as wel

 

[Shadow2027]

poor choice of character design turned me off from the game

 

[Danja]

Not surprised, firstly they should have never signed with Epic, no physical upon release was idiotic and lastly the game was a disappointment

 

[Frank Jaeger]

I hope that Remedy can turn a profit and remain solvent. While I personally didn't enjoy or finish AW2 (can't understand for the life of me why it was nominated for so many awards), I think Remedy is a unique and interesting developer. Gaming is better with than without them, so I hope they bring enough money keep the lights on while remaining independent.

 

[Explosive Zombie]

Making it an Epic Games exclusive on PC was a huge mistake and for consoles no physical was another mistake. If Epic fully funded it then no royalties so far isn't as bad as that sounds, everyone wants their games to do better but it won't cripple the company because they didn't fund the game's existence apparently. That said, it's all just weird, 12 years later a sequel to a game with a niche fanbase is fully funded by Epic to be an Epic store exclusive because they think that will convince people to switch to them?

Not only that, but what fanbase it has probably wanted to be playing as ALAN WAKE in the game, I know you still do but it's much reduced compared to the first game and the new character you play as isn't especially interesting. It also doesn't really play like the first game, it plays more like a Resident Evil game, tbh. The big draw is all the work that went into the visuals and ray-tracing and it's definitely a showstopper on PC if you have the gear but most PC gamers don't so you end up with this question of who this was even made for.

 

[GachaMadeMeBroke]

Making it an Epic Games exclusive on PC was a huge mistake and for consoles no physical was another mistake. If Epic fully funded it then no royalties so far isn't as bad as that sounds, everyone wants their games to do better but it won't cripple the company because they didn't fund the game's existence apparently. That said, it's all just weird, 12 years later a sequel to a game with a niche fanbase is fully funded by Epic to be an Epic store exclusive because they think that will convince people to switch to them?

Not only that, but what fanbase it has probably wanted to be playing as ALAN WAKE in the game, I know you still do but it's much reduced compared to the first game and the new character you play as isn't especially interesting. It also doesn't really play like the first game, it plays more like a Resident Evil game, tbh. The big draw is all the work that went into the visuals and ray-tracing and it's definitely a showstopper on PC if you have the gear but most PC gamers don't so you end up with this question of who this was even made for.

Were people really wanting AW2 to play like AW1? The core combat mechanics is unchanged though so the only other thing that remains is the levels, and there really wasn’t much to that either. AW is a very basic action game. Maybe I can see Saga being an issue for some people who want to only play as Alan but with the way the game is structured and how it allows you to focus on one character for long stretches of time, I would hope it’s not a massive dealbreaker.

The biggest issue is the exclusivity as you mentioned. That really was such a mistake on PC. Remedy had their hands tied but it was a major detractor. And of course lack of physical.

 

[Explosive Zombie]

Were people really wanting AW2 to play like AW1? The core combat mechanics is unchanged though so the only other thing that remains is the levels, and there really wasn’t much to that either. AW is a very basic action game. Maybe I can see Saga being an issue for some people who want to only play as Alan but with the way the game is structured and how it allows you to focus on one character for long stretches of time, I would hope it’s not a massive dealbreaker.

The biggest issue is the exclusivity as you mentioned. That really was such a mistake on PC. Remedy had their hands tied but it was a major detractor. And of course lack of physical.

First game played sort of like a more horror Half-Life with the occasional level that was so open there was optional driving sections and such. You moved faster, combat was faster and more plentiful, etc.

I still bought it and played it day 1, but I've seen the sentiment among fans that it didn't look like a real Alan Wake game to them so they refrained from buying.

 

[ethomaz]

Sadly.

Basically a masterpiece of the genre.

 

[GachaMadeMeBroke]

First game played sort of like a more horror Half-Life with the occasional level that was so open there was optional driving sections and such. You moved faster, combat was faster and more plentiful, etc.

I still bought it and played it day 1, but I've seen the sentiment among fans that it didn't look like a real Alan Wake game to them so they refrained from buying.

Thats an interesting sentiment tbh. I was always under the impression that most fans liked the game for the twin peaks vibe and story rather than the gameplay lol OG was horribly undercooked.

 

[ethomaz]

Thats an interesting sentiment tbh. I was always under the impression that most fans liked the game for the twin peaks vibe and story rather than the gameplay lol OG was horribly undercooked.

Alan Wake gameplay is really bad and repetitive... it fame has nothing to do with gameplay but character, story and atmosphere.
And because it was one of the few Xbox exclusives Xbots could brag about it got more attention than deserved imo.

Alan Wake 2 gameplay is the opposite... it feels real... it weigh like you are really in a real life horror experience at the point that it feels cumbersome and claustrophobic like you should be in a similar experience.

It is perfection.

You are a human in a very tragic horror experience... your movements are affected... you reactions are affected.
You are not suppose to be a super here with iron nerves that doesn't get affected by anything.

Remedy did an absolutely amazing work with this level of detail in gameplay.

 

[Kokoloko]

Alan Wake gameplay is really bad and repetitive... it fame has nothing to do with gameplay but character, story and atmosphere.
And because it was one of the few Xbox exclusives Xbots could brag about it got more attention than deserved imo.

Alan Wake 2 gameplay is the opposite... it feels real... it weigh like you are really in a real life horror experience at the point that it feels cumbersome and claustrophobic like you should be in a similar experience.

It is perfection.

You are a human in a very tragic horror experience... your movements are affected... you reactions are affected.
You are not suppose to be a super here with iron nerves that doesn't get affected by anything.

Remedy did an absolutely amazing work with this level of detail in gameplay.

Do I need to play AW 1 before AW2?

 

[ethomaz]

Do I need to play AW 1 before AW2?
It is an standalone experience so you can play it directly without play the first and you will understand is happening in AW2 story but...
You will miss some story background... well it not the miss but you will not know because you didn't played the first game.

How can I explain...
Some things will happen and the game won't you give you more backstory about them... it will be ok like every other game that doesn't go in detail about things.
But if you have played AW1 you will know the detail

It add to the experience but it is not a deal breaker to understand AW2.

Edit - There is a FAQ too.

Do I have to have played the original Alan Wake to fully understand Alan Wake 2?

Alan Wake 2 is a sequel but set up as a stand-alone experience. Newcomers can enjoy the thrill-ride with no past knowledge of the previous game. For the returning fans there are tons of lore and connections to be discovered.

Alan Wake 2 FAQ — Alan Wake

If you run into any issues while playing Alan Wake 2, please go to the Epic Games Player Support page for Alan Wake 2 HERE to submit a report. June 2024 Update PHYSICAL EDITIONS Physical editions for PlayStation 5 and Xbox Series X are now available for pre-order. Where can I pre-order? At...

www.alanwake.com

 

[Kokoloko]

Do I need to play AW 1 before AW2?
It is an standalone experience so you can play it directly without play the first and you will understand is happening in AW2 story but...
You will miss some story background... well it not the miss but you will not know because you didn't played the first game.

How can I explain...
Some things will happen and the game won't you give you more backstory about them... it will be ok like every other game that doesn't go in detail about things.
But if you have played AW1 you will know the detail

It add to the experience but it is not a deal breaker to understand AW2.

Edit - There is a FAQ too.

Do you recommend just watching a video about AW1? Or should I play it?

 

[ethomaz]

Do you recommend just watching a video about AW1? Or should I play it?

I will always recommend to play because I don’t like to watch others playing

It was free for PS+ users sometime ago, no?

 

[JAHGamer]

This was a top 3 release of 2023, bought it on EGS day 1 and I might double dip for a PS5 physical. Hopefully they never make the mistake of no physical release ever again.

 

[GachaMadeMeBroke]

Alan Wake gameplay is really bad and repetitive... it fame has nothing to do with gameplay but character, story and atmosphere.
And because it was one of the few Xbox exclusives Xbots could brag about it got more attention than deserved imo.

Alan Wake 2 gameplay is the opposite... it feels real... it weigh like you are really in a real life horror experience at the point that it feels cumbersome and claustrophobic like you should be in a similar experience.

It is perfection.

You are a human in a very tragic horror experience... your movements are affected... you reactions are affected.
You are not suppose to be a super here with iron nerves that doesn't get affected by anything.

Remedy did an absolutely amazing work with this level of detail in gameplay.

They did an incredible job not just with the combat but the world design too. I loved the Metroidvania/survival horror backtracking. It was a ton of fun hunting for lore and items. AW2 is so far above AW, not just in terms of story but gameplay too.

 

[Evilnemesis8]

This was a top 3 release of 2023, bought it on EGS day 1 and I might double dip for a PS5 physical. Hopefully they never make the mistake of no physical release ever again.

It wasn't really a mistake, it was most likely the only way this game was made, especially at that budget/scope.