Despite breaking records for its fast-selling pace and earning critical acclaim, Alan Wake 2, developed by Remedy Entertainment, has yet to generate a profit for the company.
Launched last October, the award-winning sequel quickly became a critically acclaimed title, beloved by both audiences and critics alike. By the beginning of the month, Alan Wake 2 had sold 1.3 million units, surpassing its predecessor Control by 50% in terms of sales within the same time frame.
Control, another of Remedy’s creations, has sold 4 million copies since its release, resulting in €100 million in revenue for the company. This success, however, has not been mirrored by the second Alan Wake game in the short term. Although the game has recouped a significant portion of its development and marketing expenses, Remedy’s CEO, Tero Virtala, confirmed that the game is not yet in the black. However, there is optimism within Remedy that Alan Wake 2 will emulate Control’s “excellent” long-tail sales, which continue to generate revenue many years after the initial release.
Nevertheless, the significance of Alan Wake 2‘s sales extends beyond its immediate financial return. Its success has afforded Remedy the necessary resources to accelerate the progress of its other projects, including Control 2, the remake of the first two Max Payne games, and the multiplayer Control spinoff codenamed “Condor”. These projects are expected to reach their next development stages on or before June, thanks to personnel transitioning from Alan Wake 2.
Despite the promising start, the path to profitability for Alan Wake 2 is complicated, a path marred by Remedy’s own decisions. Its approach to game distribution (lower price, digital-only) and content exclusivity could hamper its sales potential. For example, its deal with Epic Games for Alan Wake 2 entails that Epic funded its development and marketing, with costs to be recouped before profits are shared equally between Epic and Remedy. This deal makes the PC version of Alan Wake 2 exclusive to the Epic Games Store, severely limiting its sales on other platforms, particularly Steam.
It certainly doesn’t help that Epic has a tendency to make purchasing its games complicated, which isn’t likely going to be fixed soon as Epic is heavily invested in the Remedy Connected Universe.
Nevertheless, as Alan Wake 2 continues to sell, Remedy remains hopeful about its long-term financial success. The game’s initial performance and the critical response have set a strong foundation, but the journey to profitability remains uncertain.
With two paid DLCs on the horizon for Alan Wake 2 and a robust pipeline of future projects, Remedy’s strategic decisions in the coming months will be crucial in determining the financial outcome of their latest horror masterpiece.
