Following Digital Bros’ Q1 2019 financial report, Remedy has issued an official statement about the sales of its latest title, Control. According to the statement, Remedy expects its revenue and profit to grow during 2019.
Remedy also claimed that the revenue recognition practices differ between it and Digital Bros. As such, the figures reported by the companies are not comparable.
Here is the full statement:
“On Wednesday 13th November 2019, Digital Bros S.p.A. – the publishing partner of Remedy Entertainment Plc – released their first quarterly report of the financial year that started in July 2019. The report also covered the revenue recognition regarding sales of the Remedy-developed game Control, which was released on 27th August 2019. Digital Bros S.p.A. disclosed €17.7M of Control game sales recognition during 1.7.–30.9.2019. Also prior to this, Digital Bros S.p.A. had reported a revenue recognition of €9.5M during the financial year 1.7.2018–30.6.2019 based on the exclusive agreement regarding the distribution of Control’s PC version on Epic Games Store.
On May 3rd 2017, Remedy announced the signing of a publishing agreement with Digital Bros S.p.A. regarding the Control game, and disclosed Remedy to receive 45% of game sales net revenue. The revenue share is calculated from net sales, which takes into account deductions such as retail and marketing costs of the game. Once the game starts to sell and before paying the game developer, the publisher is typically allowed to deduct upfront specific costs, such as manufacturing and distribution costs of physical game copies as well as marketing costs.
Additionally, revenue recognition practices differ between Remedy and Digital Bros S.p.A., as Remedy reports based on FAS and Digital Bros S.p.A. reports based on IFRS. Therefore, the figures reported by the companies are not comparable. Based on the aforementioned reasons and especially during the early phases of the game’s sales, Control’s revenue recognition to Remedy takes place with a delay and no direct conclusions can be drawn as to the recognition of net sales share based on the figures reported by Digital Bros S.p.A.
Remedy is commenting this matter with a company announcement as publicly available reports regarding the estimates of Control game sales revenue recognition do not – for the reasons described above – reflect the actual amount or timing of the 45% net sales revenue to be recognised by Remedy.
Remedy’s outlook remains unchanged as the company expects its revenue and profit to grow during 2019, as mentioned in the half-year report released on August 13th 2019.”
John is the founder and Editor in Chief at DSOGaming. He is a PC gaming fan and highly supports the modding and indie communities. Before creating DSOGaming, John worked on numerous gaming websites. While he is a die-hard PC gamer, his gaming roots can be found on consoles. John loved – and still does – the 16-bit consoles, and considers SNES to be one of the best consoles. Still, the PC platform won him over consoles. That was mainly due to 3DFX and its iconic dedicated 3D accelerator graphics card, Voodoo 2. John has also written a higher degree thesis on the “The Evolution of PC graphics cards.”
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Sony will acquire them for sure.
wTF, where that came from ?
The voice inside his head.
https://www.gamesradar.com/sony-is-rumoured-to-be-preparing-a-bid-to-buy-remedy-making-alan-wake-2-or-a-control-sequel-potential-playstation-exclusives/
http://www.pushsquare.com/news/2019/10/sony_is_looking_to_make_even_more_studio_acquisitions_ahead_of_ps5
It’s extremely likely IMO.
Sony & Microsoft have already tried.
Not Sony. Microsoft lost their chance.
nah
blah blah blah blah blah blah blah corporate speak BLAH BLAH BLAH
All of that is code for “game flopped”
This statement is purely for Remedy’s shareholders, so course it needs to be formal.
But is it excellent?
No, today it’s fascinating
I love you guys
So the game has already generated around 30M€ in total revenue, which isn’t too bad since its budget was below 30M€
These guys made 1 great game in like 20 years. Its hard to fault Microsoft for dumping them, they take far too long to produce anything and in the end its barely worth it.
Control can be added to the countless other mediocre titles that tried to ride the feminist train, expecting it to boost their sales.
2 games
Why do every company with epic games always trying to proof they making money over epic 😀 interesting pattern.
It’s called stockholm syndrome
Part of the deal maybe? They did make money with the deal aniways, so it’s a non starter.
Amazing how much they lost by going with the anti-consumer Epic store.
Epic, make piracy great again.
Game flopped hard and now begins the damage “Control” to save face and to justify their EGS exclusivity.
EGS deal was excellent decision financially, obviously.
EGS deal being financially great deal is objective fact.
“Financially great” but not ‘financially excellent’?
If it isn’t excellent to him, then something must be wrong? How can great be enough for him?
Something is indeed wrong with him and always has been!
It’s very simple. If the game did amazing they would be flaunting it.
A good example is look how Microsoft has been hiding Xbox ones sales numbers this entire generation. Compare that to Sony or Nintendo
Well we all knew from the starting backlash, that MS will be in hot waters. Thanks to people who aren’t even in the company anymore btw.
Also MS being the figure that wants to bring the GAAS shiz and streaming, I am glad they are burning in hell.
I don’t dive a damn if the game sold good or not, this one deserves the GOTY, imo.
Can’t remember any other game this good in 2019.
Eh.. the level of unexplainable stuff going on in that game, because it looks or sounds cool, was too much for me. Death Stranding seems believable in comparison. Glad you liked it, it looked like a fine product, I just can’t get into Twin Peaks “odd” style stuff.
And that’s exactly what I liked the most in the game, the “mindfvck” stuff, I just love this kind of shyt.
Can’t wait to play Death Stranding, knowing Kojima I’m sure this one will have lots of plot twists and mindfvckery stuff, but I’ll wait for the PC version.
Yeah, I zone out during that mind-F stuff. Not voluntarily, I just do. Death Stranding has some of it, but I can wrap my head around it. I really like it a lot on my PS4 Pro.. hope you will also.
Oh, and everything got explained during the gameplay. It’s not complicated at all. Dunno if you played Alan Wake, but there’s lots of reference from it on Control. It’s an amazing game (for those who like this kind of things, obviously).
For me it’s Resident Evil 2, at least as far as AAA games are concerned, but I’ll admit I haven’t playerd Control yet. I’ll definitely check it out when it comes to Steam.
Loved RE2 too!
Big fan of the series (until the 5th game at least).
But in terms of storytelling, Control is by far superior. Much of it because we already know the plot around RE games, of course.
I strongly recommend you play Control, you won’t regret.
LOL.
RAGE 2 and Death Stranding deserve GOTY more and that games are s**t.
Yeah Death Stranding is downright garbage and RAGE 2 had decent gunplay but otherwise bad game.
youtube(dot)com/watch?v=ZacyTGVyfHY
?
Thanks for that. Laughed hard repeatedly. The reviewer’s voice kind of reminds me of a more eloquent Karl Pilkington.
ohh noooo the techdemo didnt sell well … awww maaaan ….
What an utter load of puffed fluff.
Never once saw this kind of fluff from them with Alan Wake, but suddenly with this, because of the EGS deal. It’s like they are trying to indoctrinate themselves, into thinking the EGS was the better deal.
Well it was.
Maybe its because it was about some soccer mom playing out her pseudo-science power fantasy. Not exactly Max Payne.
Some analysis would be great
All that I care about is how much fun I had with this game. This and Ion Fury are GOTY for my personal tastes and playstyles.
It’s just blah blah blah blah blah