Remedy will develop and publish the game worldwide, excluding selected Asian markets, where Tencent will localize and publish the game.

The game’s development is currently in the proof-of-concept phase. Its development budget up to the end of the first year of live operations will be in the range of a typical Remedy AAA game budget. This development will be co-financed by Remedy and Tencent. In addition, Tencent will localize the game for the selected Asian markets and cover the related localization costs.

Remedy and Tencent will be responsible for their own publishing and game operating costs in their respective territories while sharing a portion of revenue to the other party after the recoupment of the development costs.

The lowering of the outlook resulted from lower-than-expected game royalties in 2022, as well as the company’s decision to take extra time to develop its game project codenamed Vanguard to ensure that it can be completed according to the high-quality standards characteristic of Remedy games. Due to these changes, some of the agreed development fees will be postponed to subsequent financial years, which will have a direct impact on Remedy’s revenue and operating result in 2022. These changes will not affect the total amount of development fees generated by the game codenamed Vanguard, only their timing.

“Remedy is currently working on five world-class game titles, and our capability to develop these games is stronger than ever. With our transition to a multi-project operating model, we have learned that it is better to keep our game projects in the early development phase for a longer period of time than in the past. The benefit of this is that the development team size and thus the operating costs stay lower, and it gives the teams the time they require to design, prepare and test key elements of the game before the project moves onto a phase of development where a larger team is required. By doing this, we are supporting both high quality as well as cost-efficient game development.

We have decided to keep the game codenamed Vanguard longer in the current proof-of-concept phase and postpone the significant expansion of the development team until the year 2023. This will postpone income from 2022 to 2023, which means that we expect our 2022 revenue to remain at the previous year’s level and our operating result to decline significantly compared to the year 2021,” says Tero Virtala, CEO of Remedy Entertainment.

As part of the agreement, Remedy has also licensed Tencent worldwide rights to develop and publish a mobile version of the game. Tencent will cover the costs for developing and publishing the mobile version. The parties have agreed on a separate revenue sharing scheme for the mobile version.

Vanguard (codename) is developed with the Unreal Engine for PC and console platforms.