Paradox Interactive isn’t doing to great right now. The company released its second quarter financial results on Thursday, and with it came the revelation that Paradox Interactive’s profits have fallen from $27.1 million to just $2.6 million year over year.
That drop of 90% can be attributed to the cancellation of the life simulator Life By You. A write down of $19.3 million is included in the profits, leading to the collapse.
As far as year-over-year revenue, that fell 22% to $53.3 million from $68.3 million.
In his comments on the financial reports, Paradox CEO Fredrik Wester says that he, and the company, have mixed feelings about where things stand right now.
“On the one hand, our core business has performed very well, but on the other hand, we made the difficult decision to cancel the release of Life by You, as the game would not be able to meet our expectations,” he said.
“Looking at the quarter’s results, we’ve released several strong expansions with good quality to our core games, which has a positive impact on the top line and provides a good cash flow from operating activities. The bottom line is sadly weighed down by the write-down of Life by You. It is painful but gives us a strong motivation to further improve our operations.”
In addition to the cancellation of Life By You, Paradox has been trying to get back into the good graces of players after the launch of Cities: Skylines 2. The game has been plagued by various problems since release, and the game’s console release has been delayed time and time again.
What do you make of the profits falling by 90% at Paradox Interactive? For more Insider Gaming, read about what Netflix has done to the Bioshock movie.
