Control will receive significant visibility on PlayStation marketing channels and the Epic Games Store, thanks to agreements made with respective parties.
Control’s marketing has kicked into a higher gear, gaining good exposure in key industry events such as GDC and E3, where the game received 24 nominations and 12 awards including best game of the show from Gamespot (one of the leading gaming websites).
Remedy finalized the first Crossfire game project with Smilegate during the second half of 2018, and soon after that in October continued the cooperation with a new Crossfire project, which is now in production.
Remedy’s third unannounced game project, as well as the Vanguard project, have progressed further with small early phase teams. Early negotiations with potential business partners have also started, and the company are in a financially strong position and want to retain stronger business control of its own games, management is not in a hurry to sign business partnerships for own new games.
The cash position remained strong, with EUR 21 million at the end of the period under review.
It’s noteworthy that Remedy’s operating profit benefited from the one-time royalty income and the start of product development capitalization.
The company’s revenue mainly comprised of development fees received from the publishers of Control and Crossfire game projects. Remedy also recognized one-time royalty of EUR 2,5 million, consisting of royalty payments from previously released games.
Two weeks before release
We believe Remedy has a golden opportunity for a successful release of the game Control. The release window looks promising, with a longer period behind us without any major releases. No major third-person action adventures will either be released for a few months after the release. Two of the biggest players in the industry, Sony and Epic will do a strong market push for the game.
The only uncertainty, for the time being, is how good the game is. With a Metascore above 80 Remedy and its publisher, 505 Games have a good chance to sell somewhat above 1 million copies in 2019 we believe. For fans of third-person action games, Control, Death Stranding (release date November 8) and Star Wars Jedi: Fallen Order (release date November 15) are the most anticipated games the second half of 2019.
Remedy has EUR 21 million in cash. If the game Control becomes successful, we expect a highly lucrative deal for at least one of the own projects in the pipeline. On the other side of the coin, if the game becomes a commercial failure Remedy will still be in a financially strong position.
By clicking "Sign up" you indicate that you read and agree to our Terms & ConditionsI already have an account and want to sign in