Remedy Entertainment just delivered some brutal news to investors. The Finnish studio behind Alan Wake and Control reported a devastating 16.42 million euro operating loss for Q3 2025, a shocking reversal from the 2.4 million euro profit they posted during the same period last year. The culprit behind this financial disaster has a name – FBC: Firebreak, Remedy’s first self-published game that crashed and burned so spectacularly the company wrote off 14.9 million euros in capitalized development costs.
The Numbers Paint a Grim Picture
Remedy’s Q3 2025 financial results covering July through September reveal a company in crisis mode. Total revenue dropped 32% year-over-year from 17.9 million euros to just 12.15 million euros. That revenue split almost evenly between game sales at 6.04 million euros and development fees at 6.11 million euros, but those numbers hide wildly different trends underneath.
Game sales revenue actually skyrocketed 620% compared to last year, jumping from 0.8 million to 6.04 million euros. This massive increase came primarily from FBC: Firebreak being distributed through Xbox Game Pass and PlayStation Plus subscription services, along with continued sales from Control and Alan Wake 2’s long tail. On paper, this looks like a win for Remedy’s strategy to become more of a games-as-a-service publisher rather than pure work-for-hire developer.
The problem shows up on the other side of the ledger. Development fees from external partners plummeted 64%, reflecting reduced work on Control 2 and the Max Payne remakes as those projects shift phases. More critically, the FBC: Firebreak disaster forced Remedy to recognize a 14.9 million euro non-cash impairment, essentially admitting the game will never recoup its investment.
Q3 2025 Financial Breakdown
- Total revenue: 12.15 million euros (down 32% year-over-year)
- Game sales revenue: 6.04 million euros (up 620% from 0.8 million)
- Development fees: 6.11 million euros (down 64%)
- Operating loss: 16.42 million euros (versus 2.4 million profit last year)
- FBC: Firebreak write-down: 14.9 million euros
- Operating margin: -135.1% of revenue
- Employee count: 391 (up 7.7% from last year)
What Went Wrong with FBC Firebreak
FBC: Firebreak represented a major gamble for Remedy – their first self-published title and a departure from the single-player narrative experiences the studio built its reputation on. The cooperative first-person shooter launched worldwide on June 17, 2025, across PC, PlayStation 5, and Xbox Series X/S with day-one availability on both Xbox Game Pass and PlayStation Plus Extra/Premium tiers.
Despite that wide distribution and the built-in audience from being part of the connected Control universe, Firebreak landed with a thud. Players and critics criticized fundamental design issues, repetitive gameplay loops, and a lack of compelling content to justify extended play sessions. The game struggled to retain players even with the low barrier to entry that subscription services provided.
Remedy attempted to salvage the situation with a major September update called Breakpoint that aimed to address core complaints. The patches apparently didn’t move the needle enough to change Firebreak’s trajectory. With sales remaining below revised expectations even after the update, Remedy made the painful decision to write down most of the project’s capitalized costs and related publishing rights.
Strategic Shift Away from Self-Publishing
The Firebreak disaster has forced Remedy to reconsider its publishing ambitions. While the studio isn’t abandoning self-publishing entirely – they mentioned working on an unannounced game in the concept approval stage they plan to publish independently – the focus has clearly shifted back toward partnerships with established publishers who can absorb financial risk.
Control 2 remains in development with 505 Games publishing, providing steady development fee income even if those payments have declined as the project progresses. The Max Payne remake duology continues with Rockstar Games funding development, another source of reliable revenue that doesn’t expose Remedy to the same financial risk as self-publishing.
This strategic retreat makes business sense but represents a blow to Remedy’s long-term vision. The studio wanted to own its IP and control its destiny rather than depending on external publishers who take the lion’s share of profits. Firebreak’s failure proves that publishing games requires expertise and resources beyond just development talent, a lesson learned at significant financial cost.
| Project | Status | Publisher | Risk Level |
|---|---|---|---|
| Control 2 | In development | 505 Games | Low – external funding |
| Max Payne Remakes | In development | Rockstar Games | Low – external funding |
| FBC: Firebreak | Post-launch support | Remedy (self-published) | High – 14.9M loss realized |
| Unannounced Project | Concept approval | Remedy (self-published) | High – self-funded |
Alan Wake 2 Success Wasn’t Enough
The cruel irony of Remedy’s situation is that Alan Wake 2 performed exceptionally well by most measures. The game launched in October 2023 to critical acclaim, earning a Metacritic score of 89 and winning multiple Game Awards including Best Game Direction, Best Narrative, and Best Art Direction. It became Remedy’s fastest-selling title ever, moving over 1 million copies in its first two months despite being digital-only.
By February 2024, Alan Wake 2 had sold 1.3 million copies and recouped most of Epic Games Publishing’s investment. The game continues generating steady revenue through long-tail sales, similar to how Control sold over 4 million copies and generated 100 million euros in net revenue across its lifespan. Alan Wake 2’s success enabled Remedy to greenlight FBC: Firebreak, Control 2, and the Max Payne remakes earlier than originally planned.
But one successful single-player narrative game couldn’t offset the catastrophic failure of an expensive multiplayer service title. The economics of game development mean that one major miss can wipe out the profits from multiple hits, especially when a studio bets big on self-publishing without the financial cushion that larger publishers provide.
Interim CEO Wants More Urgency
Following the disappointing Q3 results, interim CEO Markus Mäki addressed investors about raising a sense of urgency within the company. This corporate speak translates to accelerating development timelines, cutting costs, and potentially making difficult decisions about which projects receive resources going forward.
Remedy no longer expects to achieve operating profit by the end of 2025, reversing earlier guidance that suggested the company would return to profitability this year. The FBC: Firebreak write-down makes that impossible, and the reduced development fee income from external partners means Remedy needs its games to sell better or reduce operating expenses to stop bleeding cash.
The good news is that Remedy hasn’t resorted to layoffs despite the financial pressure. The company employed 391 people as of September 30, actually up 7.7% from the previous year. Maintaining headcount shows confidence that the current projects will generate sufficient revenue once they launch, even if the near-term outlook remains challenging.
What’s Next for Control and Max Payne
Control 2 represents Remedy’s best chance at a commercial hit that can stabilize the company’s finances. The original Control built a dedicated fanbase that should translate to strong day-one sales for the sequel. Partnership with 505 Games means Remedy receives development fees throughout production rather than gambling everything on launch sales like they did with Firebreak.
The Max Payne remake duology carries similar reduced risk thanks to Rockstar Games funding development. Remaking beloved classics comes with built-in audiences eager to revisit those worlds with modern technology. If Remedy can recapture the magic of the originals while updating gameplay for contemporary sensibilities, both remakes should perform well commercially.
Timeline remains the critical question. Neither Control 2 nor the Max Payne remakes have announced release dates, and the development fee decline suggests those projects may be further out than fans hoped. Remedy needs revenue bridges to reach those eventual launches without burning through cash reserves or requiring emergency funding that could dilute existing shareholders.
Industry Reaction Mixed
Reddit’s gaming communities expressed sympathy for Remedy while acknowledging the Firebreak failure was predictable. Multiple comments noted that cooperative shooters require specific design expertise that Remedy hadn’t demonstrated, making the pivot from single-player narratives a risky bet. Others pointed out that the live service market has become a graveyard for ambitious projects from talented studios who couldn’t compete with established juggernauts.
Some fans worry that Firebreak’s failure could force Remedy to abandon experimental projects and stick with safe sequels. The unannounced self-published game in concept approval represents exactly the kind of creative risk-taking that made Remedy special, but investors burned by Firebreak may pressure management to play it safe going forward.
Industry analysts noted that Remedy’s situation mirrors broader challenges facing mid-sized independent developers. Too small to absorb major losses but too big to pivot quickly, these studios get squeezed between AAA publishers with massive budgets and nimble indies with low overhead. Finding sustainable business models becomes increasingly difficult as game development costs explode while consumer expectations for content volume and post-launch support continue rising.
Comparing to Other Studio Struggles
Remedy isn’t alone in facing financial headwinds during 2025. Multiple game studios have reported disappointing results, layoffs, or project cancellations as the industry adjusts to changing market dynamics. Monster Hunter Wilds saw dramatic sales declines post-launch. Various live service titles from established publishers failed to gain traction. Even successful studios are cutting costs to prepare for a potentially challenging 2026.
The difference is that Remedy lacks the financial backing to weather extended downturns. Larger publishers like Capcom, EA, or Ubisoft can absorb individual project failures because their diverse portfolios spread risk across multiple titles and franchises. Remedy betting big on Firebreak as its first self-published game left the company dangerously exposed when that bet didn’t pay off.
FAQs
How much money did Remedy Entertainment lose in Q3 2025?
Remedy reported an operating loss of 16.42 million euros for Q3 2025, compared to a 2.4 million euro profit during the same period in 2024.
Why did FBC Firebreak fail?
FBC: Firebreak struggled with fundamental design issues, repetitive gameplay, and inability to retain players despite wide distribution through Xbox Game Pass and PlayStation Plus. A major September update failed to turn the situation around.
How much did Remedy write off for FBC Firebreak?
Remedy recognized a 14.9 million euro non-cash impairment, writing down most of Firebreak’s capitalized development costs and related publishing rights.
Is Remedy Entertainment in financial trouble?
Remedy faces financial challenges after the Firebreak failure and no longer expects to achieve operating profit by end of 2025. However, the company hasn’t laid off employees and continues work on Control 2 and Max Payne remakes.
What games is Remedy currently developing?
Remedy is working on Control 2 (with 505 Games), Max Payne remake duology (with Rockstar Games), and an unannounced self-published project currently in concept approval stage.
Did Alan Wake 2 make money?
Yes, Alan Wake 2 sold over 1.3 million copies by early 2024 and recouped most of Epic Games Publishing’s investment. The game continues generating revenue through long-tail sales.
Will Remedy lay off employees?
As of September 30, 2025, Remedy employed 391 people, up 7.7% from the previous year. The company hasn’t announced layoffs despite the financial losses.
Conclusion
Remedy Entertainment’s Q3 2025 results serve as a harsh reminder that development talent doesn’t automatically translate to publishing success. The studio’s first major self-publishing venture crashed and burned, wiping out profits from critically acclaimed titles like Alan Wake 2 and forcing a 14.9 million euro write-down that pushed operating losses to 16.42 million euros for the quarter. While game sales revenue increased dramatically thanks to subscription service distribution, the FBC: Firebreak disaster has forced Remedy to retreat from aggressive self-publishing plans and refocus on safer partnerships with established publishers for Control 2 and the Max Payne remakes. The company maintains that it can weather this storm without layoffs, betting that upcoming projects will generate sufficient revenue to return to profitability. Whether that optimism proves justified depends entirely on execution for games that won’t launch for at least another year, leaving Remedy in a precarious position as it navigates one of the most challenging periods in the studio’s history. For fans who love Remedy’s unique storytelling and atmospheric world-building, the hope is that this financial setback teaches valuable lessons about sticking to strengths rather than chasing live service trends that don’t align with the studio’s DNA.