One of the gaming industry’s longest-running partnerships just came to an end. Colossal Order, the developer behind the entire Cities Skylines franchise, is parting ways with publisher Paradox Interactive after 15 years of collaboration. Starting in 2026, Iceflake Studios, one of Paradox’s internal management game studios based in Finland, will take over all existing and future development for Cities Skylines 2, including the long-delayed console versions.
The Mutual Split
In a joint statement posted on the Paradox forum, both companies characterized the decision as mutual and made in the interest of ensuring the strongest possible future for the Cities Skylines franchise. Colossal Order CEO Mariina Hallikainen expressed gratitude for the partnership and thanked the community for incredible support that made Cities what it is today. She added that the studio is excited to channel their experience, creativity, and passion into new projects that align with their long-term vision.
Paradox Deputy CEO Mattias Lilja acknowledged the remarkable achievements of the partnership, noting four games, dozens of expansions, and a community of millions of players. The publisher expressed deep respect for Colossal Order and eagerness to continue working for the passionate Cities Skylines community. Neither party provided specific details about what led to the split, but the troubled launch and ongoing issues with Cities Skylines 2 likely played a significant role.
Colossal Order Final Updates
Before Iceflake takes full control in January 2026, Colossal Order is delivering a few parting gifts. The studio recently released the Bike Patch, which adds bicycles, electric scooters, dedicated bike lanes, and bike parking infrastructure to the game. The update also includes new parks, business plazas, transportation buildings like train depots and tram stations, plus wind turbines and a small cemetery.
More significantly, Colossal Order finally delivered the long-awaited asset editor in early December 2025. The editor allows players to create custom buildings, share them through the integrated Paradox Mods platform, and implement them in their cities. Development of the editor proved technically challenging, with lingering Unity dependencies and complications affecting the large number of in-built assets. Despite the delays, the asset editor represents a crucial feature that the community has been demanding since the game launched in October 2023.
Meet the New Developer
Iceflake Studios isn’t a random choice for taking over the franchise. The Finland-based studio, located in Tampere like Colossal Order, has about a decade of experience making city building and management games. Their most notable title is Surviving the Aftermath, the 2021 post-apocalyptic city-builder that received mixed reviews but demonstrated competence in the genre. Paradox acquired Iceflake back in 2020, making them an internal studio with established relationships within the publisher.
Studio manager Lasse Liljedahl described taking over Cities Skylines as an immense honor and great responsibility. He emphasized that Iceflake sees a strong foundation and massive potential waiting to be unleashed in Cities Skylines 2. The studio plans to share detailed development plans in the coming weeks, outlining their vision for the franchise moving forward. For now, both teams are working together to ensure a smooth transition when Iceflake officially takes control in early 2026.
The Rocky Road Behind
Cities Skylines 2 launched in a rough state that significantly damaged both Colossal Order’s and Paradox’s reputations. One week before the October 2023 PC release, Paradox warned players about performance issues, essentially admitting the game needed more time but was launching anyway. The console versions for PlayStation 5 and Xbox Series X/S were delayed indefinitely due to technical problems and remain missing over two years later.
Performance complaints dominated early player feedback. Colossal Order acknowledged the problems and stated their goal was optimizing the game to run at a stable 30 frames per second, an admission that even basic performance targets weren’t being met at launch. The Beach Properties DLC was made free in response to community frustration, with additional content added to the Ultimate Edition as compensation. Despite these efforts, Cities Skylines 2 currently sits at a Mixed user review rating on Steam, while the original 2015 game maintains Very Positive reviews.
What This Means for Players
The developer change raises obvious questions about the franchise’s future direction. Will Iceflake be able to fix the lingering performance problems that have plagued the game since launch? Can they finally deliver functional console versions? Will the studio maintain the ambitious simulation systems that made Cities Skylines special, or will they simplify things to ensure stability?
On the positive side, a fresh perspective might be exactly what the game needs. Iceflake isn’t burdened by the baggage of the troubled launch and can approach problems with new solutions. They’re also working with a mature codebase that has received two years of patches and improvements. The foundation exists for a great city builder, it just needs a team that can unlock that potential without being weighed down by past mistakes.
Colossal Order Next Chapter
Colossal Order’s departure from Cities Skylines marks the end of an era for both the studio and the franchise. The developer spent 15 years building the series from Cities in Motion in 2010 through Cities Skylines in 2015 and its troubled sequel. Now they’re moving on to create new projects that align with their long-term vision, whatever that might entail.
The timing raises questions about whether the split was truly mutual or if the Cities Skylines 2 situation forced both parties to acknowledge the relationship wasn’t working. Paradox has a history of moving troubled projects between developers, having done the same with Prison Architect 2 and Vampire The Masquerade Bloodlines 2. The pattern suggests the publisher views switching studios as a viable strategy for salvaging underperforming games rather than canceling them outright.
FAQs
Why is Colossal Order leaving Cities Skylines?
Colossal Order and Paradox Interactive mutually decided to pursue independent paths after 15 years of partnership. While official statements cite alignment with long-term vision, the troubled launch and ongoing issues with Cities Skylines 2 likely contributed to the split.
Who is Iceflake Studios?
Iceflake Studios is a Finland-based internal studio owned by Paradox Interactive. They developed Surviving the Aftermath and have about a decade of experience making city building and management games. Paradox acquired Iceflake in 2020.
When does Iceflake take over development?
Iceflake Studios will assume full control of Cities Skylines 2 development at the start of 2026. Colossal Order is delivering final updates including the Bike Patch and asset editor before the transition.
What about the console versions of Cities Skylines 2?
The PlayStation 5 and Xbox Series X/S versions remain delayed over two years after the original October 2023 PC launch. Iceflake Studios will be responsible for developing and releasing the console versions as part of their takeover.
Will Cities Skylines 2 get more content?
Yes, Iceflake Studios will handle all existing and future development including free updates, continuous work on the editor, console editions, future expansions, and content packs. The studio promises players can look forward to new updates for many years.
What is Colossal Order doing next?
Colossal Order plans to work on new projects that align with their long-term vision. No specific games have been announced yet, but CEO Mariina Hallikainen expressed excitement about channeling the studio’s experience, creativity, and passion into fresh endeavors.
Why did Cities Skylines 2 have such a rough launch?
Cities Skylines 2 launched with severe performance issues that Paradox warned players about one week before release. The game struggled to maintain stable frame rates, leading to indefinite console delays, free DLC as compensation, and a Mixed Steam review rating.
Will Iceflake share their development plans?
Yes, Iceflake Studios stated they will introduce themselves and share detailed development plans in the coming weeks. Studio manager Lasse Liljedahl promised to reveal what they have planned for the next chapter of the game.
Conclusion
The handoff from Colossal Order to Iceflake Studios represents both an ending and a beginning for Cities Skylines. After 15 years of building the franchise, Colossal Order is moving on to explore new creative directions while Iceflake inherits a beloved but troubled sequel that desperately needs competent stewardship. The new studio faces significant challenges including fixing persistent performance problems, finally delivering console versions, and restoring community confidence after a disastrous launch. But they also inherit a game with strong bones and passionate fans who want to see it succeed. Whether Iceflake can turn Cities Skylines 2 into the sequel it should have been at launch remains to be seen. For now, the city-building community watches and waits to see what this new chapter brings to one of the genre’s most important franchises.