Remedy issues profit warning as Firebreak impairment hits 14.9M euros

Remedy Entertainment said this month that weak sales of its multiplayer spinoff FBC Firebreak have prompted a profit warning and a noncash impairment of 14.9 million euros, which represents the bulk of the game’s capitalized development costs and purchased publishing and distribution rights. The company said the hit will push operating profit for the current business year into negative territory and below last year’s level, although its cash position is not affected.

Remedy released FBC Firebreak in June as its first full multiplayer title, set in the Control universe. The studio said launch-phase consumer sales underperformed despite an early spike in players. In its half-year financial report, Remedy reported that the game reached more than 1 million players in its first ten days, but that many of those users were on platforms where the title was available through subscription services such as Xbox Game Pass and PlayStation Plus, which limited direct sales revenue.

The company moved quickly to address player feedback, issuing multiple updates and a major overhaul titled Breakpoint on September 29. Remedy said the update improved player and sales metrics, but that figures still...