Paradox CEO Fredrik Wester has shared his doubts over the future of the console and boxed products.
"The next generation of console hardware will probably be the last," he told attendees to the Paradox annual showcase, reported StrategyInformer.
"I'd be surprised if we see another generation after that."
He explained that the future lay in digital products and open platforms like PC, mobile and social networks, while revenue from boxed products will continue to fall.
The comments were backed up by Paradox's own rise in digital revenue, from 1.5 per cent in 2006 to 97 per cent in 2011. They also reported a growth in revenue of 75 per cent for 2011, and a 250 per cent growth in profit.
Paradox Interactive is based in Sweden, and its games include Crusader Kings II, Victoria II: A House Divided and Pride Of Nations. In 2006 it launched digital distribution service GamersGate.