Paradox Financial Reports & Live By You & Prison Architect 2

[boilesen]

I tried to be succinct and failed. Here is the Financial Reports: https://www.paradoxinteractive.com/...ress-release/interim-report-january-june-2024

Key points:

Was the project cancel purely because of the tax benefits? If so, why the dividends increased? And if the cash flow is very healthy and the company is still in the green why limit CAPEX that will be cash generating in the future even if the project doesn’t sell as planned?

Is that what we can expect from Pison Architect 2?

If those decision are being made in the name of the company and its shareholders shouldn’t that being put to a vote as in McDonalds, for example?

Shareholders vote against McDonald's antibiotics despite pension savers support - PA Future

Pressure is on McDonald's to reduce the use of antibiotics in its meat production

future.portfolio-adviser.com

And its stakeholders? Do we your supporters and consumers have a voice or input? And even more important the employees of your company?

And as Cybersbe sad aren`t the company overcorrecting passed mistakes?

If you ask me, Life By You getting outright canned is learning the lesson TOO well, and going too far in the other direction.

We hear every day that communication is more and more important, and democracy is at risk in Europe and America. Don’t all institutions in a democratic society share the responsibility to uphold does values? (even private companies)

I am being dramatic, but there is a logic.

Communications is key but as an exemple from Frederik Wester Linkedin (CEO)

“Key areas of expertise include:
- Strategy, Vision & Mission Planning
- Sales & Marketing Leadership
- Profitability Analysis
- Programs, Services & Products
- Contract Negotiations & Strategic Alliances
- Public Relations & Media Affairs
- Human Resources Management
- Team Building & Performance Improvement”

Fredrik Wester - Paradox Interactive | LinkedIn

CEO at Paradox Interactive. Since 2003 we have built Paradox from a 7 man studio to an… · Experience: Paradox Interactive · Education: School of Business, Economics and Law at the University of Gothenburg · Location: Stockholm · 500+ connections on LinkedIn. View Fredrik Wester’s profile on...

www.linkedin.com

Is communication just PR? Even if it`s true for a company in these times is not everyone becoming skeptical and discrediting everything from official statements? In that situation isn’t obviously that the PR policy must change?

About this situation I have two quotes:

In 1959 U.S. Navy Admiral Arleigh A. Burke testified before a subcommittee of the U.S. Senate about the difficulties of negotiating military agreements:

“I was in conferences in Korea where they lied, we knew they were lying, they knew we knew they were lying, and it did not make any difference. They went right ahead. Things that were obvious, I mean things that you could prove, physical things, and it made no difference.”

Or

“In our country the lie has become not just a moral category but a pillar of the State.”

From Aleksandr Solzhenitsyn that could be easily paraphrased as

“In Gaming Companies the lie has become not just a moral category but a pillar of the Industry”


Another point as said by KlainerHacker. Would it be possibe to just be sincere about the state of development an release the game as an open beta to gather feedback? The same goes for Prison Architect 2.

To further expand his questioning as you wrote off the investment is it even possible to make the content available in anyway? Even as opensource on github?
Hi,

is there a way to publish the existing content of the game in unity asset store (by payment)?

Maybe paradox get a little bit money for the work.

Best regards.

 

[druez]

I tried to be succinct and failed. Here is the Financial Reports: https://www.paradoxinteractive.com/...ress-release/interim-report-january-june-2024

Key points:

View attachment 1173124View attachment 1173125


Was the project cancel purely because of the tax benefits? If so, why the dividends increased? And if the cash flow is very healthy and the company is still in the green why limit CAPEX that will be cash generating in the future even if the project doesn’t sell as planned?

Is that what we can expect from Pison Architect 2?

If those decision are being made in the name of the company and its shareholders shouldn’t that being put to a vote as in McDonalds, for example?

Shareholders vote against McDonald's antibiotics despite pension savers support - PA Future

Pressure is on McDonald's to reduce the use of antibiotics in its meat production

future.portfolio-adviser.com

And its stakeholders? Do we your supporters and consumers have a voice or input? And even more important the employees of your company?

And as Cybersbe sad aren`t the company overcorrecting passed mistakes?




We hear every day that communication is more and more important, and democracy is at risk in Europe and America. Don’t all institutions in a democratic society share the responsibility to uphold does values? (even private companies)

I am being dramatic, but there is a logic.

Communications is key but as an exemple from Frederik Wester Linkedin (CEO)

“Key areas of expertise include:
- Strategy, Vision & Mission Planning
- Sales & Marketing Leadership
- Profitability Analysis
- Programs, Services & Products
- Contract Negotiations & Strategic Alliances
- Public Relations & Media Affairs
- Human Resources Management
- Team Building & Performance Improvement”

Fredrik Wester - Paradox Interactive | LinkedIn

CEO at Paradox Interactive. Since 2003 we have built Paradox from a 7 man studio to an… · Experience: Paradox Interactive · Education: School of Business, Economics and Law at the University of Gothenburg · Location: Stockholm · 500+ connections on LinkedIn. View Fredrik Wester’s profile on...

www.linkedin.com

Is communication just PR? Even if it`s true for a company in these times is not everyone becoming skeptical and discrediting everything from official statements? In that situation isn’t obviously that the PR policy must change?

About this situation I have two quotes:

In 1959 U.S. Navy Admiral Arleigh A. Burke testified before a subcommittee of the U.S. Senate about the difficulties of negotiating military agreements:

“I was in conferences in Korea where they lied, we knew they were lying, they knew we knew they were lying, and it did not make any difference. They went right ahead. Things that were obvious, I mean things that you could prove, physical things, and it made no difference.”

Or

“In our country the lie has become not just a moral category but a pillar of the State.”

From Aleksandr Solzhenitsyn that could be easily paraphrased as

“In Gaming Companies the lie has become not just a moral category but a pillar of the Industry”


Another point as said by KlainerHacker. Would it be possibe to just be sincere about the state of development an release the game as an open beta to gather feedback? The same goes for Prison Architect 2.

To further expand his questioning as you wrote off the investment is it even possible to make the content available in anyway? Even as opensource on github?
Hi,

I'm a shareholder and I'm happy with the direction. There were some bad decisions made by the former CEO who was removed and Paradox is living with those decisions. Games like Lamplighters league and empire of sin were simply not up to the paradox standard. Life by You was a gamble and again that wasn't done by the current CEO. Here is a snippet of their call in July on this very topic.

Companies shouldn't be run like a democracy.





So let's start with the question for you then. Aside from Prison Architect 2 and Bloodlines 2, are there any other remaining projects in the pipeline that were given the green light prior to you, Fred, coming back as CEO? Or is the current pipeline from now onwards truly product of current management?

Fredrik Wester

Yes. Except the 2 mentioned titles, we don't have any projects that are outside of our core in the main pipeline as for now. And we don't plan to greenlight anything outside of Paradox Arc that isn't exactly in our core either. However, a few core projects were greenlighted before I came back as well and they're still in development. But these titles are within the segments where we feel very comfortable.

And these gains would have been greenlighted regardless of who the whole project schedule or the project management that we were using. So I guess that's the answer to the question.

Alex Bricca

Thanks. All right. I can take the next one then. Excluding the recent poor releases/write-downs, can you talk a bit about how the core portfolio of the big 5 franchises and other smaller titles are faring? Are you happy with the results there?

Are you seeing things you want to improve?

Fredrik Wester

Well, can we talk about the big -- maybe big 7? I don't know if Age of Wonders is disregarded for example, but sure. No, go ahead. We can call it big 5 as well, but I think we have more than 5 good franchises.

Alex Bricca

I think what we sometimes refer to with -- I don't know if you used the title big 5, but we have seen a different -- we have had 5 franchises for many, many, many years that have continued to generate high revenues and high profits year after year after year. I think Age of Wonders 4 is a very successful game. But of course, we have a question mark whether it will have the same longevity as our grand strategy game has. But for sure, it's a big and important game for us. But I think we are very happy with the results of these big 6 games in general and in the quarter.

They have contributed quite a lot to a very, very strong top line. We have released strong releases on strong content on several of them and good cash flow and very, very strong margins as pretty much always with these titles. So we are very happy with them. But that doesn't mean that we want more. We think that at least several of these titles can do even better.

And we have the benefit of having 6 titles that have their similarities, but also the difference -- there are differences in between them. So it means that we can look at some of them and try to copy and paste the successes in some of them to the others and that is what we, of course, are trying to do. But this is an ongoing work. And I've been with the company for 6, 6.5 years and we have never kind of been satisfied during my period here and I guess we will never be satisfied completely with it going forward either. I think there's always something to be done.

Fredrik Wester

No. I mean, to be honest, I mean, in our management meetings, this is the question that comes up all the time, how to be better at things like this. So it's a constant process. So I think a lot of people are focusing on new games and the new pipeline and everything that is new, which is important as well. But we're in the like, if you want to call it, evergreen games industry, which means that our games get better over time and more worthy of play.

So a game can last for 10, 15, 20 years and still be better and better every year. So, yes.

 

[druez]

PS - I wish they would trade on the NY Stock exchange. Kind of a pain in the arse to use the Swedish one. Long term company, I will keep in my portfolio for a many years to come.

 

[boilesen]

I'm a shareholder and I'm happy with the direction. There were some bad decisions made by the former CEO who was removed and Paradox is living with those decisions. Games like Lamplighters league and empire of sin were simply not up to the paradox standard. Life by You was a gamble and again that wasn't done by the current CEO. Here is a snippet of their call in July on this very topic.

Companies shouldn't be run like a democracy.





So let's start with the question for you then. Aside from Prison Architect 2 and Bloodlines 2, are there any other remaining projects in the pipeline that were given the green light prior to you, Fred, coming back as CEO? Or is the current pipeline from now onwards truly product of current management?

Fredrik Wester

Yes. Except the 2 mentioned titles, we don't have any projects that are outside of our core in the main pipeline as for now. And we don't plan to greenlight anything outside of Paradox Arc that isn't exactly in our core either. However, a few core projects were greenlighted before I came back as well and they're still in development. But these titles are within the segments where we feel very comfortable.

And these gains would have been greenlighted regardless of who the whole project schedule or the project management that we were using. So I guess that's the answer to the question.

Alex Bricca

Thanks. All right. I can take the next one then. Excluding the recent poor releases/write-downs, can you talk a bit about how the core portfolio of the big 5 franchises and other smaller titles are faring? Are you happy with the results there?

Are you seeing things you want to improve?

Fredrik Wester

Well, can we talk about the big -- maybe big 7? I don't know if Age of Wonders is disregarded for example, but sure. No, go ahead. We can call it big 5 as well, but I think we have more than 5 good franchises.

Alex Bricca

I think what we sometimes refer to with -- I don't know if you used the title big 5, but we have seen a different -- we have had 5 franchises for many, many, many years that have continued to generate high revenues and high profits year after year after year. I think Age of Wonders 4 is a very successful game. But of course, we have a question mark whether it will have the same longevity as our grand strategy game has. But for sure, it's a big and important game for us. But I think we are very happy with the results of these big 6 games in general and in the quarter.

They have contributed quite a lot to a very, very strong top line. We have released strong releases on strong content on several of them and good cash flow and very, very strong margins as pretty much always with these titles. So we are very happy with them. But that doesn't mean that we want more. We think that at least several of these titles can do even better.

And we have the benefit of having 6 titles that have their similarities, but also the difference -- there are differences in between them. So it means that we can look at some of them and try to copy and paste the successes in some of them to the others and that is what we, of course, are trying to do. But this is an ongoing work. And I've been with the company for 6, 6.5 years and we have never kind of been satisfied during my period here and I guess we will never be satisfied completely with it going forward either. I think there's always something to be done.

Fredrik Wester

No. I mean, to be honest, I mean, in our management meetings, this is the question that comes up all the time, how to be better at things like this. So it's a constant process. So I think a lot of people are focusing on new games and the new pipeline and everything that is new, which is important as well. But we're in the like, if you want to call it, evergreen games industry, which means that our games get better over time and more worthy of play.

So a game can last for 10, 15, 20 years and still be better and better every year. So, yes.

Thank you for replying. I will be sincere and candid I agree with you. Companies shouldn’t be run like democracies. They are of different nature states and enterprises. I didn’t read that interview before. It was a very good one to explain and justify the current position of Paradox and I agree with the direction as well. My fears for the company really grow with the last CEO and yes my response was very emotional.


I expanded this thread in another post. https://forum.paradoxplaza.com/foru...ports-prison-architect-2-live-by-you.1698869/
I believe you will disagree with me as well as I do now. But I spoke a little more about communication and PR.
I would like your input about it

As I said in the other post I am emotionally invested in the company for being a consumer for so long and cheering for its success.



Another thing that comes to mind is as I agree with companies shouldn’t be run like democracies. I honestly not disagreeing. But in states and government the politicians act as the public perception of them is what result in votes. For companies wouldn’t the same logic apply as share prices?

In theory considering the Homo economicus all decisions would be rational. But we can, I hope, all agree that we are not very rational, and we make a lot of gut decisions. As example GameStop shares in this context. It completely ignores the fundamentals of the company.

I am just rambling as the thoughts came to mind. Sorry if they are unstructured. But I enjoy your response it was very on point and make me rethink my position. So, if you would like to engage in this I would be very thankful =D

 

[druez]

Thank you for replying. I will be sincere and candid I agree with you. Companies shouldn’t be run like democracies. They are of different nature states and enterprises. I didn’t read that interview before. It was a very good one to explain and justify the current position of Paradox and I agree with the direction as well. My fears for the company really grow with the last CEO and yes my response was very emotional.


I expanded this thread in another post. https://forum.paradoxplaza.com/foru...ports-prison-architect-2-live-by-you.1698869/
I believe you will disagree with me as well as I do now. But I spoke a little more about communication and PR.
I would like your input about it

As I said in the other post I am emotionally invested in the company for being a consumer for so long and cheering for its success.



Another thing that comes to mind is as I agree with companies shouldn’t be run like democracies. I honestly not disagreeing. But in states and government the politicians act as the public perception of them is what result in votes. For companies wouldn’t the same logic apply as share prices?

In theory considering the Homo economicus all decisions would be rational. But we can, I hope, all agree that we are not very rational, and we make a lot of gut decisions. As example GameStop shares in this context. It completely ignores the fundamentals of the company.

I am just rambling as the thoughts came to mind. Sorry if they are unstructured. But I enjoy your response it was very on point and make me rethink my position. So, if you would like to engage in this I would be very thankful =D

I'm emotional about paradox as well. They make my favorite games. I spend 1000's of hours with them, I've gotten my kids into playing them, my wife and brother as well. Over this last x-mas break here in the USA, my bother who is 58, my son who is 15, my wife who is 53 and I 51. Played over a 125 hours of CK3 together in a multiplayer game. It was so much fun.

They've gotten my son interested in history.

I posted this thread a while back to ask this very question to paradox.

https://forum.paradoxplaza.com/forum/threads/paradox-what-are-you-doing-what-is-your-identity.1602576/

What do you want your identity to be? Is pushing out crap games like empire of sins, lamp lighters league etc... who you want to be know as; a publisher like EA with even less money. Or do you want to "BE the dominate force in strategy games"?

I was not liking the old direction paradox was going in at all. Paradox the game producer I like a ton. Paradox the game publisher for the most part I'm not a huge fan. When I buy a paradox game, I have expectations. Empire of Sin didn't meet those at all. Lamplighters League I didn't even buy. Vampire and the Masquerade II -- is way to far from their core gaming experience, I've never been sold on it. But, the world of darkness mod in CK3 is awesome.

I'm ok with some of the turns they made towards a broader audience, but I do believe CK3 is suffering from targeting the entry level player base and not towards us vets who have played their game for years. I think they need to find that balance. I want challenging deep systems, I want a difficult game. CK3 was probably their easiest game to date in terms of raw difficulty I've ever played. I still love the game though.

I decided to invest in the company, I consistently buy stock in them every month. I buy a ton of stock to flip and make short term gains, but I really wanted to put money into a company I'm passionate about. Two computer game companies, I buy stock in with the idea of a long term investment. It is Paradox and CK Projekt Red.

The new/old CEO gets what paradox is and what is should focus on. Wester is the man. I do wish the creative director of the company now e.g.gthe dude who made CK2 would get involved a bit more with CK3 and get some more of that hardcore gameplay back in .

CK2 was my favorite game ever.

Overall, I'm really happy with their core franchises.

CK3 = great and getting better

HOI4 = good (but I'm not a huge WW2 guy) Still play it and enjoy it though.

EUIV = legendary and can't wait for Johan and the Tinto team to give us EUV.

VIC 3 = started out rough, but really coming along. I go into most paradox games knowing, I won't really love them till 2 to 3 years in.

Stellaris = on release I was blown away, than disappointed after about 50 hours. 2 to 3 years later, this became one of my all time favorite games and they are probably my favorite "dev" team at paradox right now. Their communication is great and how they have this curative team to address legacy systems continually is fantastic.

Imperator - could be revived one day. It seems like they tried to blend too much EU and CK and lost a true identity. I think how they handled the 2.0 version of the game and completely redid the systems and removed "mana" is a testament to the companies dedication to the game and their products.

Age of Wonders = never considered this a core product, but looks like they are adapting into one. I loved AOW 4 and it was very well done.

Cities Skylines franchise = they need to fix their reputation on part 2 of this game. Again, paradox as a pure publisher seems to screw up sometimes.

 

[boilesen]

I'm emotional about paradox as well. They make my favorite games. I spend 1000's of hours with them, I've gotten my kids into playing them, my wife and brother as well. Over this last x-mas break here in the USA, my bother who is 58, my son who is 15, my wife who is 53 and I 51. Played over a 125 hours of CK3 together in a multiplayer game. It was so much fun.

They've gotten my son interested in history.

I posted this thread a while back to ask this very question to paradox.

https://forum.paradoxplaza.com/forum/threads/paradox-what-are-you-doing-what-is-your-identity.1602576/

What do you want your identity to be? Is pushing out crap games like empire of sins, lamp lighters league etc... who you want to be know as; a publisher like EA with even less money. Or do you want to "BE the dominate force in strategy games"?

I was not liking the old direction paradox was going in at all. Paradox the game producer I like a ton. Paradox the game publisher for the most part I'm not a huge fan. When I buy a paradox game, I have expectations. Empire of Sin didn't meet those at all. Lamplighters League I didn't even buy. Vampire and the Masquerade II -- is way to far from their core gaming experience, I've never been sold on it. But, the world of darkness mod in CK3 is awesome.

I'm ok with some of the turns they made towards a broader audience, but I do believe CK3 is suffering from targeting the entry level player base and not towards us vets who have played their game for years. I think they need to find that balance. I want challenging deep systems, I want a difficult game. CK3 was probably their easiest game to date in terms of raw difficulty I've ever played. I still love the game though.

I decided to invest in the company, I consistently buy stock in them every month. I buy a ton of stock to flip and make short term gains, but I really wanted to put money into a company I'm passionate about. Two computer game companies, I buy stock in with the idea of a long term investment. It is Paradox and CK Projekt Red.

The new/old CEO gets what paradox is and what is should focus on. Wester is the man. I do wish the creative director of the company now e.g.gthe dude who made CK2 would get involved a bit more with CK3 and get some more of that hardcore gameplay back in .

CK2 was my favorite game ever.

Overall, I'm really happy with their core franchises.

CK3 = great and getting better

HOI4 = good (but I'm not a huge WW2 guy) Still play it and enjoy it though.

EUIV = legendary and can't wait for Johan and the Tinto team to give us EUV.

VIC 3 = started out rough, but really coming along. I go into most paradox games knowing, I won't really love them till 2 to 3 years in.

Stellaris = on release I was blown away, than disappointed after about 50 hours. 2 to 3 years later, this became one of my all time favorite games and they are probably my favorite "dev" team at paradox right now. Their communication is great and how they have this curative team to address legacy systems continually is fantastic.

Imperator - could be revived one day. It seems like they tried to blend too much EU and CK and lost a true identity. I think how they handled the 2.0 version of the game and completely redid the systems and removed "mana" is a testament to the companies dedication to the game and their products.

Age of Wonders = never considered this a core product, but looks like they are adapting into one. I loved AOW 4 and it was very well done.

Cities Skylines franchise = they need to fix their reputation on part 2 of this game. Again, paradox as a pure publisher seems to screw up sometimes.

My dream haha. I am about to be a baby boy father I am often imaginin how I will teach him to play =D. So far I was unlucky to teach my wife and family to play Paradox games, they are more like Overcooked Just watched this video by Stakuyi and got my hopes up

=D

I'm ok with some of the turns they made towards a broader audience, but I do believe CK3 is suffering from targeting the entry level player base and not towards us vets who have played their game for years. I think they need to find that balance. I want challenging deep systems, I want a difficult game. CK3 was probably their easiest game to date in terms of raw difficulty I've ever played. I still love the game though.

Have the exact same feeling. But I am still having fun. And to be honest, better than HOI 3. I was at the time much more complex and require so much micromanagement. I was to much for me at the time. Today I enjoyed when I got it to run without crashing

But I admited that I started with small drug that was the open door to heavier drugs. Like civilization to EU2 to Slitherin games.

Imperator I have my hopes that perhaps they would finance the modders to revive the game on the cheap

Stellarias and VIC 3 you are on the point 100% agree with you. I bought VIC 3 with the hopes that one day it will be my favorite game of the bunch.