By Sagar Mankar 
Swedish video game publisher Paradox Interactive has published its financial results for 2023, highlighting record revenue growth but mixed feelings about some of its major game launches last year.
What were Paradox Interactive’s key financials in 2023?
Paradox Interactive generated its highest-ever annual revenues of $252.5 million in 2023, a 34% increase from 2022.
However, operating profit declined by 26% year-over-year to $62.8 million.
The company’s cost of goods sold was $187.5 million, covering game development, support, royalties, and more.
The US remained Paradox’s largest market, accounting for 86.4% of total revenue.
- USA – 86%
- Eurpore – 10%
- Sweden – 2%
Paradox mainly monetizes through PC game sales, which contributed 83.4% of revenue.
- PC – 86%
- Consoles – 11.7%,
- mobile – 2.5%.
How did Paradox’s live games perform in 2023?
Paradox currently operates 10 “active games” that receive regular content updates and paid DLCs.
Those include:
- Hearts of Iron IV
- Crusader Kings III
- Prison Architect 2
- Europa Universalis IV
- Across the Obelisk
- Star Trek Infinite
- Victoria 3
- Stellaris,
- Cities: Skylines II
- Age of Wonders 4
These games have a combined 6 million monthly active users (MAU).
Titles like Hearts of Iron IV, Crusader Kings III, Europa Universalis IV, Victoria 3, and Stellaris make up the active portfolio.
Cities: Skylines II and Age of Wonders 4 are the latest to join this group in 2023.
What were the hits and misses for Paradox’s major 2023 releases?
Cities: Skylines II was Paradox’s biggest Q4 release, selling over 1 million copies globally.
It ranked 10th for over 100K peak concurrent players among new Steam games last year.
However, CEO Fredrik Wester admitted they “didn’t live up to players’ performance expectations” and couldn’t launch on all platforms simultaneously.
The game has a “Mixed” 59% Steam rating after 33k reviews, highlighting areas Paradox wants to improve.
Conversely, Paradox completely wrote down the value of The Lamplighters League, impacting 2023 profit by $24 million.
But Wester said this won’t affect long-term finances.
What does the future hold for Paradox Interactive?
With 9 games in development, Paradox aims to build on its “strong balance sheet” in upcoming years.
Some of them include:
- Foundry
- Life by You
- Millennia
- Vampire: The Masquerade – Bloodlines 2
- Prison Architect 2
- Age of Wonder 4 – Primal Fury
- Crusader King 3 – Legends of the Dead
Wester said the company is in a good position to keep growing despite economic uncertainty.
Ultimately, Paradox hopes to better meet player expectations with upcoming releases.
Delivering quality experiences remains the priority, even as the company hits new revenue records.
Paradox has a strong portfolio but can’t rest on its laurels in the competitive gaming market.
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