Paradox Just Wrote Off $37 Million on Bloodlines 2 and Actually Took the Blame For It

In a surprisingly honest move, Paradox Interactive just announced they’re writing down $37 million in development costs for Vampire: The Masquerade – Bloodlines 2. But here’s what makes this different from typical corporate damage control – they’re actually taking full responsibility instead of throwing the developer under the bus.

CEO Fredrik Wester released a statement that pulls no punches about where things went wrong. A month after the game launched in October 2025, it’s clear the sales numbers aren’t matching what Paradox hoped for. The write-down of 355 million Swedish Krona reflects the hard reality that the game’s revenue won’t cover what they spent making it.

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What Actually Happened

Vampire: The Masquerade – Bloodlines 2 had one of the most troubled development cycles in recent gaming history. The project changed hands from the original developer to The Chinese Room midway through production, faced years of delays, and dealt with last-minute controversy over DLC clans. By the time it launched, expectations were sky-high while confidence was rock-bottom.

Despite all that baggage, Wester made it clear The Chinese Room delivered what they were asked to deliver. He called it a strong vampire fantasy and praised the developers’ work on the game. The problem wasn’t execution from the studio – it was Paradox betting on a game that sat outside their wheelhouse.

The Core Business Problem

Paradox built its reputation and profits on grand strategy games like Crusader Kings, Europa Universalis, Stellaris, and Cities: Skylines. These titles have cultivated six million monthly players and proven that Paradox knows exactly how to make, market, and sell complex strategy experiences.

Bloodlines 2 is an action RPG with narrative focus – completely different territory. Wester admitted in hindsight that straying from their core expertise made it nearly impossible to accurately forecast sales potential. This isn’t the first time he’s said this, either. He made similar statements when he returned as CEO in 2021, and multiple times before that when other non-strategy projects underperformed.

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Reception and Reviews

The game received mixed to middling reviews that highlight exactly why it struggled commercially. Critics praised certain elements like the voice acting, atmosphere, and parkour movement, but pointed out significant flaws that held it back from greatness.

Common complaints included:

  • Sparse open world that felt empty and repetitive
  • Janky combat mechanics and performance issues
  • Lack of meaningful side quests compared to the original
  • Inflexible story that didn’t offer true RPG player choice
  • Technical mess with disastrous pacing

Push Square gave it a brutal 4 out of 10, calling it a technical mess. Even more forgiving reviews landed in the 6 to 7 range – the dreaded zone where a game is okay but not compelling enough to drive strong sales. The Metacritic score reflected this lukewarm reception, which was especially damaging given the cult classic status of the original 2004 game.

The Naming Curse

Dan Pinchbeck, the former studio director at The Chinese Room, revealed something fascinating after the fact. The team repeatedly tried to convince Paradox not to call the game Bloodlines 2 because it set unrealistic expectations. Calling it a sequel to a beloved cult classic meant it would inevitably be compared to memories many players had polished to perfection over 20 years.

Those discussions apparently went nowhere. The Bloodlines 2 name stuck, and with it came baggage the game couldn’t carry. Players expected an RPG that delivered the same kind of freedom, weird quests, and memorable moments as the original. What they got was more of a linear action-adventure game that happened to be set in the Vampire: The Masquerade universe.

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What Comes Next

Despite the financial hit, Paradox says they’re committed to the game’s post-launch roadmap. Two expansions were promised as part of the Premium Edition, and Wester confirmed they’ll deliver those along with updates throughout the coming year. It’s a small consolation for players who did buy in, though it’s hard to imagine these expansions will turn things around financially.

Looking ahead, Wester emphasized Paradox will refocus capital on their core segments – strategy and management games where they actually know what they’re doing. They’ll also evaluate how to develop the World of Darkness brand catalog more effectively in the future. Translation: don’t expect another big budget World of Darkness action RPG anytime soon.

Frequently Asked Questions

How much money did Paradox lose on Bloodlines 2?

Paradox announced a write-down of 355 million Swedish Krona, which equals approximately $37 million or £28 million. This represents capitalized development costs that won’t generate the profits they originally projected based on actual sales performance after one month.

Is Bloodlines 2 a bad game?

Reviews are mixed. It’s not universally terrible, but it has significant issues with combat, pacing, world design, and technical performance. Most critics found it okay but not great, with scores ranging from 4 out of 10 to 7 out of 10 depending on the outlet. The main problem is it doesn’t live up to the original game’s legacy.

Will Paradox still support the game with DLC?

Yes, Paradox confirmed they remain committed to delivering the promised expansions and updates over the coming year despite the poor sales. The two planned expansions for the Premium Edition are still on track.

Who developed Bloodlines 2?

The Chinese Room developed the final version of Bloodlines 2. The project originally started with a different developer but was handed to The Chinese Room midway through development after years of troubled production.

Why did Bloodlines 2 fail commercially?

Multiple factors contributed including development drama that hurt consumer confidence, mediocre reviews highlighting technical issues and shallow gameplay, and being a sequel to a beloved cult classic that set impossible expectations. Paradox also admitted they couldn’t accurately gauge sales potential since action RPGs are outside their expertise.

What games does Paradox normally make?

Paradox specializes in grand strategy and management games like Crusader Kings, Europa Universalis, Stellaris, Hearts of Iron, and Cities: Skylines. These complex, replayable strategy titles have been hugely successful and represent their core business competency.

Will there be a Bloodlines 3?

Extremely unlikely in the near future. Paradox explicitly stated they’ll focus capital on their core strategy game segments going forward. They’ll evaluate how to develop World of Darkness properties more carefully, which probably means smaller projects or licensing the IP to studios with proven RPG track records.

Is this the end for World of Darkness games?

Not necessarily, but expect a strategic shift. Paradox still owns the valuable World of Darkness IP and recognizes it has a strong brand. They’re just going to be much more careful about how they develop it after this expensive lesson.

The Bigger Picture

What makes this situation notable isn’t just the financial loss. It’s that Paradox openly acknowledged their mistake in a gaming industry that usually deflects blame. They could have pointed fingers at The Chinese Room’s execution, the original developer’s failed attempt, or unreasonable fan expectations. Instead, Wester took full responsibility and admitted Paradox misjudged the market because they ventured too far from what they know best.

It’s a pattern that keeps repeating for Paradox. They achieve massive success with strategy games, get confident, invest in projects outside their comfort zone, those projects underperform, and leadership promises to refocus on their core strengths. The cycle has played out multiple times over the past decade. Maybe this $37 million lesson will finally stick, or maybe in a few years we’ll be reading about another Paradox project that strayed too far from grand strategy and paid the price. Either way, fans who bought Bloodlines 2 can at least take comfort knowing they’ll get the promised DLC even if the game never becomes the commercial success anyone hoped for.

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