Remedy CEO resigns over FBC: Firebreak sales failure

Remedy Entertainment CEO resigns, Control and Alan Wake developer's new CEO reassures investors after weak sales of FBC: Firebreak caused the company to significantly lower its revenue forecast for this year and write off the game's development costs.

Remedy revealed in its quarterly earnings report today that it recognized an impairment charge of €14.9 million ($17.4 million), the majority of which was development costs and the purchase of the publishing and distribution rights to FBC: Firebreak.

Overall, Remedy's revenue fell 32% year over year to €12.2 million ($14.2 million). Remedy said this was primarily due to lower development expenses at the time than last year, during which it received revenue from Annapurna related to its Control 2 development work. Remedy also revealed that it is revising its revenue guidance for this year: While previously Remedy expected revenue and operating profit to increase year-over-year and be positive, it now expects revenue to increase but operating profit to decrease and be negative. No exact number was disclosed.

Meanwhile, CEO Tero Virtala resigned after nine years in the role. He is temporarily succeeded by Board Chairman Markus Mäki, who resigned as Chairman and was succeeded by Henri Österlund.

In comments shared with investors, Mäki said that while Remedy will continue to “work on features that increase player value” and stay true to Firebreak's shared roadmap, the studio has shifted development resources elsewhere. Mäki also sought to reassure investors that Firebreak was not a total loss:

“We also found positives in FBC: Firebreak,” he said. “Our first multiplayer product release was a technical success in a cross-platform environment, and our publishing team has built the capabilities to support our future self-published game releases.”

FBC: Firebreak is Remedy's first-ever self-published game, and while the studio claims it's a technical success, it's also Recognized last quarter The company “underperformed” on Steam and was “unsatisfied” with its commercial response. In today's earnings report, Remedy said Breakpoint only “modestly” boosted the game's sales.

us Rating FBC: Firebreak 6/10calling it an “engaging co-op shooter that, despite its great looks, lacks the depth to make the game fun long-term.”

Rebekah Valentine is a senior reporter at IGN. You can find her posts at BlueSky @duckvalentine.bsky.social. Have a story tip? Send it to [email protected].