Paradox’s Bold Vision for 2024: Confident Despite Recent Earnings Dip
By Image courtesy of Paradox Interactive.
Paradox disclosed its year-end financial report for 2024, where CEO Fredrik Wester emphasized the need for no specific concentration “on any one period.”
“There are significant fluctuations between quarters, based on what and how much we have launched,” he further commented.
The report indicates a downturn in Paradox’s earnings: fourth-quarter revenue totaled 709.1 million SEK (approximately $64.8 million), marking a 29 percent decline year-over-year. For the entire January 1 to December 31, 2024 timeframe, revenue was 2.2 billion SEK ($201 million), down 17 percent compared to 2023 within the same period.
However, the Swedish publisher performed better in terms of operating profit, which increased by 19 percent (to 395.3 million SEK) in the fourth quarter and by 10 percent (721.4 million SEK) for the full year. Unlike last year, when it recorded a 178.5 million SEK operating profit loss, Paradox did not incur such losses this quarter.
Paradox is still recovering
Paradox’s 2023 report was focused on its dissatisfaction with certain games, notably Cities: Skylines II and Star Trek: Several. During that time, the studio committed to improving issues through updates and new content, later admitting it was “overconfident” and “disorganized.”
To this end, Wester stated there has been “much” work on improving its publishing and third-party sectors and “better managing our risk-taking and creating suitable conditions for our own growth, while especially concentrating on games we are proficient in.”
On the release front, Paradox promoted DLC for Hearts of Iron IV, Crusader Kings III, and others throughout the fourth quarter of 2024. Additionally, it noted successes from new releases like Tlatoani in Early Access, Dwelling Trash Scavenger’s 1.0 launch, as well as the sale of Mellabellum back to Game River.
For the entire year, it highlighted the previously mentioned purchase of Haemimont Games, the developers of Surviving Mars. However, it did not touch on the cancellationof Life by You and the closure of its studio, which resulted in an almost $20 million write-down.
“We conclude the year with a period of considerable revenue and favorable margins, bolstered by strong releases, effective marketing efforts, and a favorable currency environment,” Wester wrote. “At the same time, we continue to be prudent and thorough in our choices. […] We have an incredibly exciting 2025 ahead and are more driven than ever to provide remarkable gaming experiences.”
Paradox’s complete 2024 report can be viewed here.
About the Author
Contributing Editor, GameDeveloper.com
Originally from Kansas City, MO, Justin Carter has contributed to a wide variety of publications including IGN, Polygon, and SyFy Wire. In addition to Game Developer, his work can also be found on io9 at Gizmodo. Don’t ask him how much gum he’s consumed, as the answer will likely be more than he’s willing to confess.