Remedy Entertainment has announced the acquisition of full rights to Control for €17 million from publisher 505 Games. The developer will handle publishing, distribution, marketing and other rights. 505 Games will continue publishing Control until December 31st, 2024, but after that, it will earn no royalties from the title.
The €17 million purchase price is the amount paid by the publisher for developing Control 2 and Condor (with a small premium). Remedy noted that the transaction would have “no immediate effect on the income statement” and present “attractive growth opportunities arising in the mid-to-long term.”
“This transaction will enable us to negotiate better deals for current and future Control games. We can now weigh up the options between self-publishing and a new publishing partner for Condor and Control 2. At the same time, we are in a better negotiating position than before, as Control is an established brand, and Alan Wake 2 has been successful.
“We are confident that these factors combined will enable us to get the right partner, deal structure and risk-reward profile that benefit Remedy and are the best fit for the Control franchise. We will evaluate and negotiate with potential future partners over the coming months. Through this transaction, we will be more directly in charge of marketing, distribution and other business-to-business deals.
“This enables further financing and partnership opportunities, which will help us to grow the Control 2 and Condor, as well as the whole Control franchise into an even greater success than before.”
Remedy CEO Tero Virtala said that the studio has “enjoyed a good partnership” with 505 Games in developing Control, which has sold over four million copies since launch. However, the acquisition of the rights is part of a “long-term strategy to have more ownership over our business and the IPs we have created.”
“Having complete ownership over the Control franchise gives us the freedom to decide the best path forward. We will consider our options carefully, knowing that Control is considered an attractive franchise by many partners.” Development on Control 2 and Condor will continue normally and Virtala reiterated both titles will reach the next stages of development in the first half of this year, meaning sometime in the coming months.
“As we amicably part ways, I would like to take this opportunity to thank the 505 Games team for our partnership over the years and for helping to establish Control as a gaming franchise with a lot of future potential.”
Remedy’s next Financial Statements Bulletin will take place on March 20th, so stay tuned for further updates on its projects.
