Tough times continue for Paradox: Bloodlines 2 was a (bad) nightmare, the partnership with Harebrained Schemes was terminated after the poor performance of Lamplighters League, Cities: Cities: Skylines 2” was released with technical bugs, and ‘Millennia’ was a disappointment. Of course, the company completely terminated “Life by You,” a competitor to “Sims,” and closed its production studio.

So it is not surprising that the company's interim report, released today, contains news that will make you suck air through your teeth. Some good news. Even in the second quarter, which lasted from April 1 to June 30 of this year, the company was operating in the black. The “bad news” It was only just barely, thanks to its homegrown flagship software - “KK3,” “Victoria 3,” and “Hearts of Iron 4” - more than any of the risks the company has taken over the past few years. However, Triumph Studios' “Age of Wonders 4” also performed well for Paradox. [Operating income fell by 90%, from 293 million Swedish kronor ($27 million) in Q2 2023 to just 37 million kronor ($3.4 million) in Q2 2024. The main reason for this was the cancellation of Life by You and the write-off of development costs, which cost Paradox about SEK 208 million ($19.2 million). After taxes and other “financial items,” Paradox's quarterly profit was SEK 27 million ($2.5 million), down 88.5% from the second quarter of last year.

I'm no financial expert, but these numbers don't sound like the direction you want your company's finances to trend, and Paradox CEO Fredrik Vester seems to think so. In comments accompanying the report, Wester said, “We end the second quarter with mixed feelings. On the one hand, our core business is performing very well, but on the other hand, we have made the difficult decision to cancel the release of Life by You, and we are very disappointed with the results.”

Wester, who will return as CEO of Paradox in 2021, seems to view some, if not all, of the risky projects of the past few years as boondoggles. ''It's clear that we've made some bad decisions on some of our projects,'' Wester said. Especially on projects outside of our core. This has to change.” He continues. [The report and Wester point out that Paradox's “core games” - the ever-popular grand strategy titles - continue to do well, while the higher-risk games the company publishes, such as Life by You projects appear to be declining, while projects like Europa Universalis 5, which he sees as a more sure bet, may be on the rise. [In 2021, we have made significant changes in the way we invest in high-risk projects. In other words, we are not starting new projects that combine high risk and high cost, such as 'Life by You,'” Wester wrote, later adding, ”In a natural self-criticism, it is worth remembering that we have a strong foothold because the foundation of our business is doing well and We have a strong foothold,” he added.

However, that does not mean that Paradox is turning inward entirely; Wester said that Cities: Cities: Skylines 2 is “regaining momentum” with “significant system changes and a lot of additions that players are enjoying,” Wester Wester said.

In other words, Wester makes it sound like Paradox wants to focus more on its strengths and less on major shakeups after taking repeated hits on outside projects. Of course, “Bloodlines 2” has not yet been released, which is out of Paradox's norm. Perhaps it shouldn't be read, but it's hard to read Wester's comments as a statement of confidence in the game. As a “Bloodline 1” enthusiast, though, I'm ready and willing to be surprised.

“Despite our great frustration at our own mistakes,” Wester says, “we are still very much looking forward to the next game.”[13] [14] [15] [16 The future is bright for Paradox. But to fully realize its potential, it will have to roll up its sleeves and work hard. You can hear more about what the company has to say in a presentation that will be available on YouTube today at 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST.