Our revenue model is based on three income flows:
- Steady income flow of development fees from Remedy’s publisher partners.
- Royalty income from successful games developed by Remedy and owned by publisher partners.
- Share of sales income from consumer sales of games owned by Remedy.
We currently have four game projects in development, out of which three are based on Remedy’s brands.
We are developing already our second collaboration project with Smilegate for their successful Crossfire game franchise. From Remedy’s perspective, this represents an outsourcing model where the partner pays Remedy for developing a game.
In addition to traditional outsourcing, Remedy and other developers typically include royalty options in the agreements. This allows the developer to receive royalties when games enjoy success.
Strong business ownership of our games
In line with our strategy, Remedy will continue to carry out projects together with suitable brands and partners while also creating and further developing in-house game brands.
This approach requires more financial investments in game projects, which results in increased risks, yet also allows the company to share a greater portion of game sales profits.
Keeping control of the intellectual property allows Remedy to have stronger ownership of any game sequels, and further development and utilization of the brands, as well as any increased value related to them.
Professionally managed game development
Remedy’s operations are based on a strong foundation of business know-how, understanding how the game industry works and a strong network of connections within the industry. Remedy has typically commercialized and financed games by signing partnership agreements with major partners, such as Microsoft, Smilegate and Rockstar.
According to Remedy’s strategy, the business model is based on the multi-project model, i.e. the ability to develop several high-quality games simultaneously. The multi-project model allows the company to introduce high-quality games to markets at a faster pace, without compromising quality.
The multi-project model is also used for scaling advantages and improved production efficiency. Remedy’s game development methods, proprietary Northlight game technology and key game development support functions are easily scalable for larger production.
Transitioning to the new model has meant investments in recruitment, however, due to the scalability, the number of staff required is not as high as before. Adopting the new multi-project model reduces risks related to the success of an individual game and dependency on individual partners.