Paradox Proves DLC Is Still A Moneymaker

Paradox just released its second-quarter financial results, and they’re proving that DLC is still a moneymaker.

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Paradox just released its second-quarter financial results, and they’re proving that DLC is still a moneymaker.

DLC–it’s not always a profitable thing for big publishers, but for smaller game makers it can be a big moneymaker. Paradox Games, the developer of Stellaris and Crusader Kings and the publisher behind Prison Architect and Pillars of Eternity, is quickly becoming a big player. And they’re proving that DLC makes money for big companies too.

According to the publisher’s second-quarter financial report, revenue is up 20% compared to the same time last year, while profits are up 29%. And the big driver of those gains? DLC.

“One of our main growth factors is the game expansions we launch on an ongoing basis,” noted Paradox CEO Ebba Ljungerud. “During the quarter, we launched the expansions Emperor for Europa Universalis IV, Island Bound for Prison Architect, and Invasions for Age of Wonders: Planetfall – all in line with our strategy to provide games with strong brands and longevity.”

PC is still Paradox’s largest platform by far, but the recent release of Stellaris on both console and mobile has made headway in both markets. That said, PC remains Paradox’s focus, as exemplified by the recent acquisition of Finnish studio Iceflake, the makers of Surviving the Aftermath.

As with everything in 2020, you can’t really have a financial statement without some mention of COVID-19. Paradox notes that the big surge in players has tapered off in “the latter parts of the summer,” so the following quarters might not be as strong as the first two quarters.

COVID-19 might also result in delays to unannounced games, whatever those may be.

There was no mention in Paradox’s financial report of their recent unionization, which made the publisher the first game company in the world to unionize. Paradox celebrated the announcement last June, with head of HR Marina Hedman saying that “we must ensure that our employees continue to feel valued and empowered to shape our company, even as our structure shifts towards larger teams and projects.”

So far, the union only encompasses Paradox workers in Sweden and does not apply to its various internationally owned studios.

Source: Paradox

Link Source : https://www.thegamer.com/paradox-profits-grow-dlc/