Remedy CEO Exits After Firebreak's Sales Slump

Remedy Entertainment's CEO has stepped down, with the new leader of the Control and Alan Wake studio seeking to reassure investors following FBC: Firebreak's disappointing sales. The weak performance forced the company to slash its annual revenue forecast and write off the game's development expenses.

In its latest quarterly report, Remedy disclosed a €14.9 million ($17.4 million) impairment charge covering the bulk of FBC: Firebreak's development costs, along with purchased publishing and distribution rights.

Overall, Remedy's revenue fell 32% compared to the previous year, dropping to €12.2 million ($14.2 million). The company attributed this decline mainly to reduced development fees, as last year's figures included revenue from Annapurna Interactive for work on Control 2. Remedy also revised its full-year outlook: while initially projecting higher revenue and positive operating profit, it now anticipates increased revenue but a negative operating profit. No specific figures were provided.

Amid these developments, CEO Tero Virtala has resigned after nine years. Board chairman Markus Mäki has taken over as interim CEO, with Henri Österlund succeeding him as chairman.

In remarks to investors, Mäki emphasized that Remedy remains committed to "enhancing player value" and sticking to its Firebreak roadmap, though development resources have been reallocated. He also highlighted some positive takeaways from the project:

"We’ve identified encouraging aspects of FBC: Firebreak," Mäki stated. "Our debut multiplayer launch was technically smooth across platforms, and our publishing team has strengthened capabilities that will benefit future self-published titles."

FBC: Firebreak marked Remedy's first self-published game. While the studio praised its technical execution, it acknowledged last quarter that the game "underperformed" on Steam and fell short commercially. Today's report noted that the Breakpoint update only provided a minor sales boost.

We awarded FBC: Firebreak a 6/10, describing it as "an engaging co-op shooter that lacks the depth to sustain long-term interest, despite its polished visuals."