Paradox Interactive Loss: $27M Hit as Bloodlines 2 Fails

Paradox Interactive has reported a staggering 162% drop in operating profit for the quarter ending Dec 31, 2025, swinging the Swedish publisher into the red despite a record-breaking pace of game releases. The financial downturn was entirely driven by the commercial failure of the long-delayed RPG, Vampire: The Masquerade – Bloodlines 2. For the three months ending Dec 31, 2025, Paradox posted an operating loss of SEK 245.4 million ($27.7 million USD). This is a sharp reversal from the SEK 395.3M profit recorded during the same period last year. 

The primary culprit for the downturn was a massive SEK 355.3M ($40.1M) financial hit related to the vampire sequel, which included a write-down, a move that essentially admitted the game’s market value is far below its development costs. While the Bloodlines 2 gaping hole dominated the headlines, Paradox’s core business remained surprisingly active. 

Total revenue for the quarter actually grew by 23% to SEK 874.8M ($98.7M). This growth was fueled by the successful November launch of Europa Universalis V, developed by Paradox Tinto, alongside steady income from staples like Crusader Kings III and Cities: Skylines II, as reported by Gamesindustry.biz. 

However, the weight of the Bloodlines failure was too much for the annual balance sheet to carry. Operating profit fell by 80% to SEK 146M ($16.5M) in the fiscal year 2025, despite total annual sales remaining stable at SEK 2.2B ($248.3M). Wester noted that the quarter was the "most intense" in the company's history, featuring two new releases, one remaster, and DLCs for the majority of their portfolio.

Paradox Interactive Pivots to Grand Strategy

Vampire: The Masquerade – Bloodlines 2 endured one of the most turbulent development cycles in recent memory. After moving from Hardsuit Labs to The Chinese Room, the game finally launched in October 2025 to mixed reviews. Fans and critics alike felt the final product lacked the depth of the 2004 cult classic, leading CEO Fredrik Wester to admit the game simply did not meet commercial expectations after a turbulent development cycle that began shortly after Paradox acquired the World of Darkness IP in 2015. 

Moving forward, Paradox is signaling a retreat to its sweet spot: the grand strategy and management games that built its reputation. Wester described the launch of Europa Universalis V as the major highlight of the year, calling it a textbook example of how the company builds long-lasting games with engaged communities. He stated that this latest installment has laid a "very strong foundation" for the publisher’s future.

The company is now "strengthening its strategic focus" and reallocating resources toward projects where they have the most expertise and long-term potential. By moving past the Bloodlines 2 write-down, Paradox aims to create better conditions for future investments within its niche, moving away from the risky, decade-long development cycles that defined its recent RPG venture.