Another Game Destroyed by Sweet Baby Inc: The Alan Wake 2 Story
The journey of a game from development to market success is filled with unexpected challenges, and adding in Sweet Baby Inc. to that mix only seems to guarantee failure at this point. Remedy Entertainment’s highly anticipated Alan Wake 2 is a prime example.
Nearly a year after its release, the game has yet to turn a profit, largely due to the controversial influence of Sweet Baby Inc., a consulting firm that has garnered a reputation for its involvement in several troubled game releases.
In Remedy Entertainment’s Half Year Financial Report covering January to June 2024, the company shared, "At the time of publishing this report, Alan Wake 2 has recouped most of its development and marketing expenses."
In other words, it means they’ve taken a loss on the game.
Despite selling 1.3 million units by February 2024, as noted in their Business Review, the game has not generated any royalties, according to Remedy's CEO, Tero Virtala. Instead, the revenue from Alan Wake 2 was overshadowed by higher development fees from other projects, such as the Max Payne 1&2 remake.
Adding to the situation - Remedy's decision to withhold specific sales figures for Alan Wake 2, a move that has sparked serious speculation about the game's actual performance in the market. The company's financial report reveals that €912,000 came from royalties, with most of it attributed to Control and Alan Wake Remastered… leaving the financial impact of *Alan Wake 2* in question.
Despite the financial strain, Remedy Entertainment plans to release physical editions of the game. A Physical “Deluxe Edition” is set to go on sale on October 22, 2024, followed by a Collector’s Edition from Limited Run Games in December 2024. This indicates the company's commitment to leveraging the franchise's fan base while attempting to boost sales and recover costs… but whether or not it works remains to be seen.
A significant factor in the game's financial woes is the involvement of Sweet Baby Inc. According to industry insiders, the consulting firm played a pivotal role in shaping the game's narrative and development strategy, a strategy that ultimately failed to resonate with players.
Sweet Baby Inc., as I’ve covered in depth as of late, has been linked to several high-profile game failures, raising questions about its influence and effectiveness in the industry… and more importantly- why are companies continuing to utilize their services that have been proven time and time again to destroy a games chance at any success?
Finnish analyst Atte Riikola estimated that Alan Wake 2 cost €70 million, with €50 million allocated to development and €20 million to marketing. Despite this substantial investment, funded entirely by Epic Games, Remedy only receives 50% of net revenue after Epic recoups its costs, which adds another layer of complexity to the financial situation.
As Remedy Entertainment navigates these challenges, it remains focused on its long-term vision for the Alan Wake franchise. In a section labeled "Long-term business prospects”, the company expressed its commitment to expanding its franchises within the Remedy Connected Universe, including Control and Alan Wake. This strategy aims at the company's dedication to building a robust future for its established IPs, despite the current setbacks.
The saga of Alan Wake 2 serves as a good reminder about the potential pitfalls of development and marketing strategies influenced by external consultants like Sweet Baby Inc. As Remedy Entertainment continues to navigate the complex world of game development, the industry will be watching closely to see how the company adapts and learns from this experience…
~Smash
I'm a fan of the Alan Wake/Control universe, but held back on picking up Alan Wake 2. Between the timing of the game's release (The Year of Wokeness, 2023), the narrative focus on DEI-included characters (rather than Alan Wake himself), and the knowledge of SBI's involvement indicated to me the game was headed nowhere, fast. A shame, because series like Alan Wake are very niche and when you destroy one it's tough to find another that ticks all the same boxes/scratches that same itch. At least Supermassive Games is still cranking out some decent stuff.
Clearly all games that are put out by corrupted game companies that are corrupted by the Woke virus will fail-No doubts about that
I swear, there HAS to be a secret kickback scheme in place, in which CEOs don't care about "losing money" in the public's eye.