Remedy Entertainment’s latest quarter paints a stark picture of a studio juggling strong brand momentum with a costly stumble. In Q3 2025, the Finnish developer behind Alan Wake and Control reported a sharp rise in game sales and royalty income, yet still posted a steep operating loss driven largely by the disappointing performance of its first self-published live-service title, FBC: Firebreak.
From July to September 2025, Remedy generated €6 million in game sales and royalties, a dramatic jump from €0.8 million in the same period last year. Despite that seven-fold increase, overall revenue fell 32% year over year to €12.2 million, down from €17.9 million. The bottom line took the biggest hit, with the operating result dropping to €-16.4 million.
The culprit was FBC: Firebreak, a live-service spin set in Remedy’s connected universe. Launched on June 17, 2025 for Xbox Series X|S, PlayStation 5, and PC—and offered day one on Xbox Game Pass and PlayStation Plus—the game was positioned as a pillar for recurring revenue. Even after the Breakpoint overhaul update aimed at addressing core issues, the title consistently trailed expectations. Remedy has revised its long-term sales outlook for Firebreak and recorded a €14.9 million non-cash impairment, a write-down that pushed profits deeper into the red. The quarter also followed the resignation of the company’s CEO on October 22, 2025, adding management turnover to a challenging financial picture.
Interim CEO Markus Maki sought to steady nerves by pointing to the strength of the studio’s established franchises and partnerships. He emphasized ongoing investment in Alan Wake and Control, as well as active development of the Max Payne 1 & 2 remake with Rockstar Games. In the company’s report, Maki said: “Despite challenges with FBC: Firebreak, our other in-development projects are progressing according to plan. The majority of our effort goes into working with our established franchises – Control and Alan Wake – which we continue to invest in and expand into other media as part of our long-term strategy. In addition, we’re focused on Max Payne 1&2 remake with Rockstar Games. While carefully balancing our product at risk, we also need to retain the ability to create new experiences for our audiences, as we have for the past 30 years.”
The guidance is ambitious. Remedy aims to double revenue by 2027 while maintaining steady year-over-year growth. It’s also targeting a 30% EBITDA margin beyond that horizon, a lofty bar in a games industry where margins often run below 20%. Hitting those marks will likely depend on a few levers: continued sales momentum from the back catalog, stronger franchise extensions for Alan Wake and Control, and the successful launch of the Max Payne remake project.
For investors and fans alike, the quarter underlines a familiar industry lesson: live-service bets can be volatile, even for studios with acclaimed storytelling pedigree. Remedy’s brand remains potent, its catalog and royalties are trending up, and its partnership pipeline looks healthy. But turning that momentum into consistent profitability will require disciplined execution and a sharper turnaround strategy for FBC: Firebreak—or a decision to refocus resources where the studio’s strengths already shine.
