Alan Wake 2 Still Struggling to Make Back Its Budget

April 30, 2024

Highlights

Alan Wake 2’s financial report shows profits below the game’s budget despite strong sales, raising concerns for Remedy Entertainment’s future projects.
Sales figures reveal 1.3 million copies sold since February 2024, but the full budget for Alan Wake 2 has not been met.
In spite of this, Remedy’s revenue increase of 56.2% over Q1 2023 has paved the way for more frequent releases in the Alan Wake and Control franchises.

Remedy Entertainment, the developer of Alan Wake 2, released a financial report showing that Q1 2024 profits are still below the title’s budget even though sales have done well. The report shows more than just Alan Wake 2 earnings, with a full breakdown of the developer’s financial situation.

A survival horror game, the much anticipated sequel was released in October 2023. Even though there was a significant gap between the release of the original and Alan Wake 2, the game received various awards and fan praise. Multiple DLCs are currently in progress for the title, including Alan Wake 2’s Night Springs DLC.

Over the years, Remedy has experimented with live-action, and the upcoming Night Springs DLC offers a chance for the studio to outdo itself.

Alan Wake 2 has sold 1.3 million copies since the beginning of February 2024, according to the Remedy report. Along with the sales figure, the developer noted that it has “recouped a significant part of the development and marketing expenses.” This points to the full budget for the title still not being met after strong demand for the game. While the specific amount of budget costs left wasn’t included, Remedy did point to extending the life of Alan Wake 2 through the DLC it focused on creating in the first quarter.

Despite Strong Sales, Budget Still Hasn’t Made Back for Alan Wake 2

Even though Alan Wake 2 hasn’t generated any profits for Remedy, the company has had a 56.2% revenue increase over Q1 2023, a sum of just under €4 million. The increase in profits has allowed the developer to plan more frequent games in both the Alan Wake and Control franchises. This could also be affected by Tencent increasing its investment in Remedy by 10%.

The business review also notes all projects currently in the works at Remedy. With the Control IP completely self-owned, more titles in the franchise are on the horizon. Codename Condor, a title taking place in the connected Remedy universe, has entered full production. Control 2 is rounding out the concept stage of the game, with an estimated production stage beginning in Q2 2024. The Max Payne1+2 remake is in production and should move to the final development stages this quarter. The completely unknown Codename Kestrel project is still in the concept stage.

While Alan Wake 2 still hasn’t begun earning royalties, the interest in the franchise did increase overall revenue for Remedy. With the game’s DLC coming to market in the future, it can only be surmised that the title will soon turn a profit. If not, it at least sets a solid foundation for Control 2 and other titles in the Remedy Connected Universe.