Paradox: 'we don’t really need retailers any more'

Paradox Interactive, publisher of Magicka, says it no longer needs retail support, claiming 90% of the company's revenue now comes through digital distribution.

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Paradox Interactive, publisher of games like Magicka and Mount and Blade, says it no longer needs retail support. "Retail sales are like a bonus for now," Fredrik Wester, CEO of Paradox told PC Gamer, revealing that 90% of the company's revenue now comes through digital distribution sales. "We don’t really need retailers any more."

Obviously, digital distribution bypasses many of the hurdles that retail releases require: there are no discs to print, no boxes to ship, and having to fight for coveted shelf space. However, Wester suggests that digital distribution affords game creators greater creative freedom. "People complain to publishers that there are only sequels on the market, but that’s because retailers want to see sequels, because they can do their chart diagrams for how things sell and things like that," he added. "So one of the things preventing more creative gaming has been the retail challenge."

It's unlikely that a game like Magicka, a quirky co-op adventure game, would have found success in a market largely determined by retail. It has gone on to sell more than 600,000 copies since release. It later received a tongue-in-cheek expansion pack, "Vietnam."

Andrew Yoon was previously a games journalist creating content at Shacknews.

From The Chatty
  • reply
    July 6, 2011 2:00 PM

    Andrew Yoon posted a new article, Paradox: 'we don’t really need retailers any more'.

    Paradox Interactive, publisher of Magicka, says it no longer needs retail support, claiming 90% of the company's revenue now comes through digital distribution.

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      July 6, 2011 2:40 PM

      Haha, that's awesome. :D

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      July 6, 2011 2:40 PM

      Go forth and conquer, Eastern Europe!

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      July 6, 2011 2:42 PM

      Only 90%?

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      July 6, 2011 2:44 PM

      Best PC developer at the moment

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      July 6, 2011 3:01 PM

      i bought Magicka on Steam during the sale and it's a damn fun game. i like these guys.

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      July 6, 2011 3:07 PM

      Called that shit.

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      July 6, 2011 3:45 PM

      Been saying/questioning this for a long long time, as to why PC games are going over the $60 mark when "there are no discs to print, no boxes to ship, and having to fight for coveted shelf space".

      I'm happy Paradox is doing well, its not them I'm complaining about, I'm looking specifically at the greedy fucks known as Activision and EA.

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        July 6, 2011 3:56 PM

        Because they can and yes it sucks

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      July 6, 2011 4:36 PM

      Will that game ever come out on PS3? =(

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      July 6, 2011 8:59 PM

      [deleted]

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      July 7, 2011 3:02 AM

      good for them

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      July 7, 2011 6:10 AM

      Frankly, 600k units is a small number. It's great that they have low dev costs and that they can afford to sell less than a million copies of the game, but frankly, those sales numbers are more a suggestion that they could have used retail than not.

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        July 7, 2011 6:22 AM

        they do have a retail presence, just a small one. They're basically an indy studio though so it's not like they need huge numbers.

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