Paradox Interactive Announces Significant Write-Down of The Lamplighters League Development Costs and Confirms Layoffs at Harebrained Schemes

Paradox Interactive has disclosed plans to write off the capitalized development costs associated with The Lamplighters League, in addition to confirming a round of layoffs at the game's developer, Harebrained Schemes, which occurred earlier in the year. According to a statement on the company's website, a total of SEK 320 million ($29.4 million) will be recorded as expenses in the fourth quarter of 2023, leading to an anticipated loss of SEK 248 million ($22.8 million) for the same period. Paradox CEO Fredrik Wester expressed his disappointment with the game's commercial reception, stating, 'The Lamplighters League is an enjoyable game with numerous strengths. Although we are seeing cautiously positive player numbers in subscription services, the commercial reception has been underwhelming, which is frankly a significant letdown.' Furthermore, it was revealed that a substantial number of employees at Harebrained Schemes were let go during the summer, with a former employee reporting that 'around 80% of the studio' was affected in July. A Paradox representative confirmed the layoffs, stating that the studio's workforce was 'significantly reduced' as the game entered its final development phase and launch preparations. The company is currently working on a post-launch support plan for The Lamplighters League, which launched recently with a peak concurrent player count of only 690.