Remedy Entertainment's long-standing CEO, Tero Virtala, is stepping down from his position. Markus Mäki will serve as interim CEO while a permanent replacement is sought. This announcement follows a profit warning due to disappointing sales of their latest game, FBC: Firebreak.
Tero Virtala, the CEO of Remedy Entertainment, and the company's Board of Directors have mutually agreed that he will step down from his position with immediate effect. He has held the position since August 2016. The Finnish company will begin the search for a new CEO immediately. Virtala will remain with the company during an agreed transition period to support the handover of CEO duties.
The Board of Directors at Remedy has appointed Markus Mäki as the company's interim CEO. Mäki is one of the company's founders. He has been a member of the board since 1995, acting as Chairman until his appointment.
"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," says Remedy's interim CEO Markus Mäki.
He is also a member of the company's core management team, with responsibility for production. Following his appointment, he will step down from his role as Chairman of the Board, continuing as an ordinary member. The board has elected Henri Österlund, a member of Remedy's board since 2017, as the new chairman.
No reasons were given for the sudden change, but the company had recently issued a profit warning due to weak sales of FBC: Firebreak. The company recognises a non-cash impairment of €14.9 million, representing the majority of the game's capitalised development costs and allocated purchased publishing and distribution rights. Remedy expects its revenue to increase from the previous year, but anticipates that its operating profit (EBIT) will be negative and below that of the previous year.
During Tero Virtala's time at the helm of the Finnish company, they released the games Control, Alan Wake Remastered, CrossfireX/Crossfire HD (single-player), Alan Wake 2, and FBC: Firebreak. Remedy also bought back the rights to the Control series from publisher 505 Games and entered the world of self-publishing, forming a partnership with Annapurna to develop and produce their award-winning Control and Alan Wake franchises.
