Alan Wake II developer Remedy cancels multiplayer project Codename Kestrel

Remedy has cancelled its upcoming multiplayer project codenamed 'Kestrel' to rally around existing franchises.

The Alan Wake and Control developer said Kestrel "showed early promise" at the early concept stage after being rebooted from an earlier project codenamed 'Vanguard' in 2023.

Despite those positive signs, the studio added that "other projects have advanced well" and would perhaps be a safer bet in the long-term.

Kestrel was billed as a "premium cooperative multiplayer game" that leaned into Remedy's "core strengths." Tencent had agreed to co-finance and co-publish the project, which was initially announced as a freemium title but eventually ditched that model over perceived market risks.

"Codename Kestrel showed early promise, but the project was still in its early concept stage. Our other projects have advanced well and are moving to the next stages of development, and increasing focus on them provides us with benefits," said Remedy CEO Tero Virtala.

"We can reallocate talented Kestrel developers to these other game projects, and many of our support functions get additional focus on their operations. This is yet another means to ensure that our game projects continue advancing well. I want to thank our Kestrel development team. Though we decided to discontinue the project for wider Remedy benefits, our team has done good work and provided us with valuable learnings."

Remedy rethinks project pipeline after acquiring the full rights to Control

Remedy recently acquired the full rights to the Control franchise from 505 Games, meaning it now owns all rights to Control, spin-off codename 'Condor,' Control 2, and all future Control products.

"Thanks to the Control acquisition, we can now freely decide on the future of our two established franchises, Control and Alan Wake," said Virtala in February. "We are currently weighing self-publishing and related business models. Simultaneously, we are actively looking into different partner publishing models and evaluating potential partners."

Both Control and Alan Wake are linked as part of the wider Remedy Connected Universe, and the studio feels that growing and expanding both series will be a "key part" of its future.

As for the here and now, Alan Wake II had sold 1.3  million units as of February 2024 and Remedy says sales have continued with a "high average price."

"At the end of the first quarter, the game had recouped a significant part of the development and marketing expenses," added the studio. It was a performance that Virtala said contributed to a "special and memorable" but financially "challenging" year, not least because the company incurred €7.2 million in impairment charges when rebooting Project Kestrel.

Now, with Kestrel on the scrapheap, Remedy's upcoming pipeline features Control spin-off Project Condor, Control 2, and remakes of Max Payne 1 & 2. The studio is also working on DLC to "extend" Alan Wake II.