Paradox Interactive has published its financial results for the second quarter, revealing that profits have fallen from $27.1 million to just $2.6 million year over year. This 90% decline may be due to the cancellation of the life simulator Life By You. The profits include an impairment of $19.3 million, which led to the collapse. As for revenue year over year, it has decreased by 22% to $53.3 million, down from $68.3 million.
In his comments on the financial reports, Fredrik Wester, CEO of Paradox Interactive, stated that he and the company have mixed feelings about the current situation. “On 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 have met our expectations,” he said. “Looking at the results for the quarter, we released several strong and high-quality expansions for our core games, which positively impacts the top line and provides good cash flow from operating activities. The bottom line is unfortunately weighed down by the impairment of Life by You. It’s painful, but it gives us strong motivation to further improve our operations.”
