Paradox operating profit dropped 162% year-on-year as it writes down Vampire: The Masquerade Bloodlines 2

Swedish games firm Paradox Interactive has reported a 162% decrease in its operating profit for the three months ending December 31, 2025 due to the poor performance of Vampire: The Masquerade – Bloodlines 2.

The numbers

For the three months ending December 31, 2025

• Revenue: SEK 874.8 million ($98.7 million), up 23% year-on-year
• Operating profit: -SEK245.4 million (-$27.7 million), down 162% year-on-year

For the 12 months ending December 31, 2025

• Sales: SEK 2.2 billion ($248.3 million), level year-on-year
• Operating profit: SEK 146 million ($16.5 million), an 80% decrease year-on-year

The highlights

The company reported that it is writing down the costs of Vampire: The Masquerade – Bloodlines 2 to the tune of SEK 355.3 million ($40.1 million); CEO Fred Wester said that the game did “not meet our commercial expectations”. As a result of the title, Paradox reported an operating loss of SEK245.4 million ($27.7 million).

Despite Vampire’s performance, Paradox still reported SEK 874.8 million ($98.7 million) in revenue for its fourth quarter, a 23% increase year-on-year. This, Wester said, is largely due to the launch of grand strategy title Europa Universalis V, which came out on November 4 and was developed by Paradox’s Tinto studio.

For the full 2025 financial year, the Swedish firm brought in SEK 2.2 billion ($248.3 million) in sales, representing a 0.4% decrease year-on-year. Operating profit across the full year was SEK 146 million ($16.5 million), an 80% decline.

Wester described Q4 as its “most intense” in Paradox’s history and said that it is “strengthening [its] strategic focus” moving forward.

“With two new game releases, one remaster, and DLCs for most titles, we held a pace that truly demonstrates the strength of our organisation and our portfolio,” Wester said.

“The core business delivered strong performance with high revenues and solid cash flow. However, the results for the period were impacted by currency headwinds and the write-down of Vampire: The Masquerade – Bloodlines 2, as the game did not meet our commercial expectations. At the same time, this marks an important turning point: we are now strengthening our strategic focus, reallocating resources, and creating even better conditions for future investments where we have our greatest expertise and long-term potential.

“The major highlight of both the quarter and the year was the launch of Europa Universalis V, a game that brings the franchise into a new era. Few game series have been as central to Paradox as Europa Universalis. What began as a niche title 25 years ago is today a textbook example of how we build long-lasting games with highly engaged communities. With this latest instalment, we have taken significant steps forward and laid a very strong foundation for the future.”

Vampire: The Masquerade – Bloodlines 2 started development at Hardsuit Labs shortly after Paradox acquired White Wolf – which owned the World of Darkness IP – in 2015. In 2021, the Swedish firm said that Hardsuit Labs was no longer working on the project, with UK developer The Chinese Room taking over work in 2023.