Revenue & Profit Decline for Paradox, but Investment is Up - Sales
by Craig S , posted on 15 May 2019 / 2,458 Views
Stockholm-based video game developer and publisher Paradox Interactive has revealed in its Q1 2019 financial report that revenue and profit are down notably.
The company, which is most well-known for its grand strategy titles, posted revenue of $24.7 million (down 11% YoY) and profit of $6.5 million (a whopping 55% down YoY).
However, CEO Ebba Ljungerud is quoted saying the following:
"The first quarter of the year has been characterised by a focus on long-term growth and expansion in several of our core areas. These investments in development, marketing and organisation need to be done well in advance of the games being released and thus before we get a return on these investments.
This means that our margins are lower when we are in a strong development phase, an effect that will be very noticeable when we simultaneously have a quarter with fewer major game releases.
It should be noted that all game purchases made before a game has been released are not recognised as revenue until the game is released."
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Sadly, it's more likely that they'll just transition away from niche titles and old business models to chase after the latest money train like everyone else. Hope I'm wrong.
The problem is that paradox's fanbase isn't one with strong growth. And they don't pump out new games often. It's just not profitable to not go the dlc route for them
