Finnish game developer Remedy has announced a significant write-down of €14.9 million (.3 million) in its latest profit warning to investors. This non-capital impairment reflects “a majority” of the development costs, as well as the publishing and distribution rights associated with its title, FBC: Firebreak.
Financial Forecast Adjustments
In light of this write-down, Remedy has adjusted its financial forecasts for the current fiscal year. While the company still anticipates a year-on-year increase in revenue, it now projects that operating profit will decline sharply, potentially entering negative territory.
FBC: Firebreak, which launched in June, has not met expectations, as acknowledged by Remedy. Despite the release of several updates aimed at enhancing the game, including a significant update named Breakpoint in September, these efforts have yet to translate into improved sales figures.
“Remedy is recognising a non-cash impairment of capitalised development costs and allocated purchased publishing and distribution rights related to FBC: Firebreak,” stated CEO Tero Virtala. “While we balance future investments to the title, we continue developing and improving the game in line with our updated long-term sales forecast.”
