Remedy CEO Tero Virtala has stepped down with immediate effect

Remedy CEO Tero Virtala has stepped down with immediate effect

Tero Virtala, CEO of Remedy Entertianment, has stepped down with immediate effect, in mutual agreement with the company’s Board of Directors. Markus Mäki, one of the studio’s founders and Chairman of the Board up until this point, is shifting across to be interim CEO, and Board member Henri Österlund is stepping up to be the new Chairman.

Remedy’s interim CEO Markus Mäki said, “I want to thank Tero Virtala for his substantial contribution to the management of Remedy since 2016. I personally thank Tero for good cooperation and wish him all the best for the future.”

The change of leadership comes a few weeks after Remedy revised their financial outlook, off the back of FBC: Firebreak’s underperformance. Having launched in June, the game immediately struggled, with Remedy working to bring major overhauls to their first live service title. This launched on 29th September, but despite bringing “improved player and sales metrics after the update, sales have not reached Remedy’s internal targets.” This leaves the company with “a non-cash impairment of capitalized development costs and allocated purchased publishing and distribution rights related to FBC: Firebreak.”

A Q3 2025 business review will come on 29h October to provide a broader picture of the studio’s development efforts and future outlook.

Remedy enjoyed many highs through Virtala’s tenure as CEO, who joined the company just as they were looking for new independence and impetus after a long period of working exclusively with Microsoft. That included a first IPO to secure funding to grow into a multi-game studio,  and to partnerships with 505 Games and Smilegate in the early years. This, in turn, produced the major hit for the company that was Control (and the easily forgotten dud that was CrossfireX), and the company rode that momentum to gain new partnerships and investment. A significant deal with Epic Games brought the Alan Wake Remastered and a slick and very well received horror sequel in Alan Wake 2. They’ve also secured funding for Control 2, and bought back rights to go it alone.

In the name of diversifying their portfolio, Remedy ventured into multiplayer gaming with FBC: Firebreak, but the game has underperformed, and alongside slower sales for Alan Wake 2 that outside observers might have expected, put a bit of a dent into their status on the stock market. Since nearly hitting share prices of €50 in 2021, they’ve slid back down to around €13.

To be clear, Remedy’s new outlook is that revenue will still increase over last year, but that operating profit from ongoing development projects will be negative. The push is now to forge ahead with work on the Max Payne remakes and Control 2, with more details on these to come at next week’s business review.

Source: Remedy

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