The write-down of capitalized development costs is based on an updated sales forecast, Paradox writes in a press release.
"One month after release, we unfortunately find that sales are not meeting our expectations, which is why it is necessary to make an impairment loss. The responsibility rests entirely with us as a publisher. The game is outside our core areas, and in retrospect it is clear that this has made sales difficult for us to assess," says CEO Fredrik Wester in a comment.
The write-down applies to the fourth quarter and is not cash flow-impacting. It is made in addition to the planned so-called declining balance depreciation of SEK 346 million for the quarter. SEK 40 million of the capitalized development cost will remain on the balance sheet at year-end.
“Bloodlines 2”, which was released on October 21, was a long-awaited sequel to its 2004 predecessor. A problem-ridden development dragged on, and in 2021, Seattle-based Hardsuit Labs was fired as developer to be replaced by British The Chinese Room.
