Remedy Entertainment Buys Rights to Control From 505 Games for €17 Million - News
by William D'Angelo , posted on 01 March 2024 / 4,950 Views
Remedy Entertainment announced it has bought all the rights to the Control IP from publisher 505 Games for €17 million, which is how much 505 Games invested in the development of Control 2 and the multiplayer spin-off game Condor.
505 Games will continue to be the publisher for Control until December 31, 2024. Remedy is looking to whether self-publish the Control games or to find a new publishing partner.
Control has been a hit for Remedy Entertainment having sold over four million units lifetime and generated approximately €100 million in revenue.
The transaction will allow Remedy "to be more directly in charge of marketing, distribution and other business-to-business deals."
"As part of Remedy’s long-term strategy to have more ownership over our business and the IPs we have created, we have gotten back all rights for Control and the in-development Condor and Control," said Remedy CEO Tero Virtala.
"Having complete ownership over the Control franchise gives us the freedom to decide the best path forward. We will consider our options carefully, knowing that Control is considered an attractive franchise by many partners. Condor and Control 2 have both progressed well in recent months and we expect these projects to reach their next development stages during the first half of 2024. The development of Condor and Control 2 will continue normally when we consider the best publishing, distribution and financing model for these projects."
He added, "As we amicably part ways, I would like to take this opportunity to thank the 505 Games team for our partnership over the years and for helping to establish Control as a gaming franchise with a lot of future potential."
Remedy Entertainment's most recent release, Alan Wake 2, released in October 2023 and has sold 1.3 million units worldwide as of the beginning of February 2024. It is is also Remedy's fastest selling game ever and is published by Epic Games.
Read the key terms of the transaction below:
- Termination of Agreements: Publishing agreements for Control, codename Condor, and Control 2 are immediately terminated by mutual agreement.
- Reversion of Rights: For Control 2 and codename Condor, all publishing, distribution, marketing, and other rights licensed to 505 Games revert to Remedy with immediate effect. 505 Games will continue as the publisher of Control through a transition period ending December 31, 2024, under the terms of the original Control publishing agreement. In addition, 505 Games continues to administrate existing B2B deals for Control until their agreed expiration dates. After the transition period and the expiry of these B2B deals, 505 Games will have no future royalty or other rights to Control.
- Purchase Price and Cash Flow Effect: The maximum purchase price for the transaction is approximately EUR 17 million, which equals the amount that 505 Games has paid for the development of codename Condor and Control 2 to date including a minor premium. Remedy is entitled to set off certain receivables from the purchase price and, therefore, the cash flow effect from the transaction will be clearly less than the purchase price. Remedy will pay the net purchase price in three cash instalments during the next twelve months.
Thanks, GamesIndustry.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Remedy has Control.
All because 505 games lost Control😁
Hopefully they get the rights from Quantum Break next. I want to play it but I don't have a powerful enough PC and dont really want to get a Xbox just for that.
I'd buy a Quantum Break PS5 ver. for sure! I know some people are sick of old games in current consoles but that's one game I've always been curious about but can't play since I don't have an Xbox/don't own a gaming PC. Same thing with older X360 titles like Lost Odyssey.
Excited for the possibility for a sequal even more now!
Now it will truly be part of the Alan wake verse after this transaction lol
Cool but I wish they could get the rights to Max Payne. Does Rockstar own them? Since they were involved in the first two and developed the third one (which doesn't have as good a story but at least the gameplay was really good). Correct me if I'm out of the loop.
I can't keep track of who owns what.
Like SSO. Microsoft had the rights for the first one, but Sony the IP.
Is Quantum break split between remedy and microsoft?
Wait I thought remedy who made alan wake, made control
What I don't understand is why Microsoft won't purchase Remedy. They would be their equivalent of Insomniac to Sony. Such a shame because they make fantastic games!
I doubt Remedy would want that after they had to wait 10 years to get Alan Wake 2 done because Microsoft wouldn't fund the game.
