The Swedish game publisher and developer Paradox Interactive is known for its major grand-strategy game series such as Europa Universalis, Crusader Kings, and Hearts of Iron. However, the company is currently struggling with its economic strategy. They are going through a somewhat turbulent period with several disappointments that have significantly impacted the company's finances.

PC Gamer reports that according to the latest financial statement released this week, the company has experienced a dramatic 90% drop in operating profit. From a profit of 293 million Swedish kronor in the second quarter of 2023, it has now fallen to just 37 million kronor in the same quarter of 2024. This is primarily due to the write-offs of the cancelled game Life by You and associated development costs, which have cost Paradox around 208 million kronor.

Although Paradox still manages to maintain a profit, it is primarily due to established titles like Crusader Kings 3, Victoria 3, and Hearts of Iron 4. CEO Fredrik Wester comments on the financial statement, conveying mixed feelings. On one hand, the core business has performed very well, but on the other hand, the company made the difficult decision to cancel the release of Life by You, as the game would not be able to meet their expectations.

Wester also expresses that the company has made mistakes with several of its risky projects in recent years. He admits that it is clear they have made the wrong calls in several projects, especially outside of their core, and states that this must change. With a focus on strengthening the well-known core area, it seems that Paradox will move away from risky projects and instead prioritise safer bets like Europa Universalis 5.