Paradox Interactive today published its interim financial report covering the first nine months of 2021, highlighting a revenue decrease of 22% when compared to the same period last year, and outlining a shift in approach for the future that sees it focusing less on externally developed games. Revenues also suffered a year-on-year drop of 42% in Q3 2021.
CEO Fredrik Wester described the report as "a disappointment," noting that Paradox Interactive has underperformed due to multiple factors, including canceled projects, delays which resulted in fewer new releases, as well as the publisher's investments in externally developed games, where it must "improve at controlling game vision, quality, and progress." During the Twitch livestream dedicated to the report, he also revealed that it was the company's worst report in terms of profit.
"My and the management team's focus is on maximizing and developing a few strong segments and franchises, rather than placing several new big flags in unexplored territories. So that our strengths in the strategy and management segments come to the fore," Wester explains.
"One effect of this is that our internal development will take precedence in future investments. At the same time, we will take a more conservative stance on external development, unless we have a strong and proven relationship with the studio in question."
He adds that the publisher won't give up investments into externally developed titles, but "they will be monetarily smaller, faster in process, and more focused in scope."
Paradox Interactive also aims to address the lower quality that some of its recent DLC releases saw, having established a "stronger framework for how we work with and set targets for the quality of games and expansions and have created a clearer ownership of game quality where decisions are made closer to game development."
Surviving Mars: Beyond and Below and Europa Universalis 4: Leviathan are currently rated Very Negative and Overwhelmingly Negative on Steam, the latter counting among the worst-rated games on the storefront since its launch back in April.
This shift in strategy also comes after Ebba Ljungerud, who previously held the position of CEO, announced her departure from the company in September.
The report also reveals that Paradox Interactive currently has 15 new games in development alongside more content for its core titles.
Keep updated on the latest PC Gaming news by following GameWatcher on, checking out our videos on , giving us a like on , and joining us on .