# Remedy Entertainment Obtains €15M Loan from Tencent: A Strategic Step Towards Self-Publishing

Finnish video game creator **Remedy Entertainment**, famous for titles like *Control* and *Alan Wake*, has established a new financial partnership with Chinese technology behemoth **Tencent**. This agreement, worth **€15 million**, will offer Remedy substantial financial support as it shifts towards a self-publishing framework, aligning with the studio’s long-lasting strategic interests.

## Tencent’s Increasing Investment in Remedy

The recent loan setup will transform into around **811,110 new shares**, representing roughly **5.98%** of Remedy’s total shares. This is not Tencent’s initial investment in the Finnish developer. In **May 2021**, Tencent acquired a **3.8% stake** in Remedy, which escalated to **14%** by **April 2024**. This escalating investment highlights Tencent’s faith in Remedy’s capabilities and the collective vision shared by both entities.

As Tencent broadens its presence in the global gaming market, Remedy has strategically utilized these investments to enhance its developmental resources and strive for greater autonomy in game publishing.

## The Transition to Self-Publishing

In comments made to **GameIndustry.biz**, Remedy CEO **Tero Virtala** elucidated the reasoning behind the loan and its fit within the studio’s expansive strategy.

> “Part of Remedy’s long-term strategy has been to strengthen our position in the value chain, to have more control over how our games are commercialized, and to grow our share of the value these games can create,” Virtala mentioned. “As we progress towards self-publishing, this financing will assist us in developing and fully harnessing the potential of the games we have in development and effectively executing the commercial activities of our forthcoming self-published titles.”

Transitioning to self-publishing is a major development for Remedy, which has typically collaborated with outside publishers such as **Epic Games** and **505 Games**. Self-publishing will enable the studio to maintain greater authority over its intellectual properties and revenue channels, affording it increased adaptability in the marketing and distribution of its games.

## The Cancellation of “Kestrel” and Upcoming Ventures

Remedy’s affiliation with Tencent previously encompassed a multiplayer initiative codenamed **”Kestrel,”** part of a larger partnership between the two companies. However, in **May 2023**, Remedy declared that the project was **canceled**, pointing to a reorientation towards different priorities. Nonetheless, the bond between the two firms remains robust, demonstrated by the new loan agreement.

Looking forward, Remedy has multiple high-profile projects on the horizon, including the much-anticipated **Control 2**, developed alongside **Annapurna Interactive**. The studio also intends to broaden the *Control* and *Alan Wake* franchises into other formats, such as film and television, as part of its collaborative efforts with Annapurna.

## Alan Wake 2: Critical Acclaim, Financial Hurdles

Remedy’s latest title, **Alan Wake 2**, debuted in **October 2023** to significant critical praise. The game has already earned several **Game of the Year** accolades and is lauded for its innovative narrative, immersive design, and technical excellence. However, despite its critical reception, Remedy has recognized that *Alan Wake 2* has not yet fully **offset its development expenses**.

To enhance sales and reach a broader audience, Remedy has revealed plans to launch a **physical edition** of *Alan Wake 2* in **December 2023**, in coordination with **Limited Run Games**. This initiative could assist the game in achieving higher commercial performance, particularly amongst collectors and enthusiasts who favor physical editions.

## A New Chapter for Remedy Entertainment

As Remedy advances, the studio is evidently gearing up for sustained growth and durability. The financial support from Tencent, alongside its strategic alliances with Annapurna and other industry collaborators, will equip the studio with the necessary resources to continue creating high-quality, narrative-rich games.

The choice to transition to self-publishing signals a new era for Remedy, which could enable the studio to assume a more prominent position within the global gaming market. By gaining greater authority over its projects and intellectual properties, Remedy is positioning itself for a future where it can fully capitalize on the success of its titles, both creatively and financially.

As Remedy evolves, fans can anticipate more ambitious endeavors, including the expansion of the *Control* and *Alan Wake* universes, in addition to fresh, original intellectual properties that will surely exhibit the studio’s distinctive combination of storytelling, innovation, and gameplay.

## Conclusion

The €15 million loan from Tencent marks a pivotal achievement for Remedy Entertainment as it embarks on its path toward self-publishing. With an expanding