Harebrained Schemes and Paradox Interactive to split in 2024
The announcement comes a week after Lamplighters League was projected as a Q4 loss
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Paradox Interactive and Harebrained Schemes (HBS) have agreed to separate.
On January 1, 2024, the companies will part ways; both parties said the decision was a part of their strategic and creative priorities.
The split comes more than five years since the BattleTech developer was acquired for $7.5 million.
Paradox will maintain ownership of The Lamplighters League, released this month, and other titles developed by HBS.
Meanwhile, HBS will continue to support The Lamplighters League until the end of the year as it seeks funding and partnerships as an independent studio.
"We and HBS' leadership have been discussing what would happen after the release of The Lamplighters League, but a new project or sequel in the same genre was not in line with our portfolio plans," said Paradox COO Charlotta Nilsson.
"Hence, we believe that a separation would be the best way forward. We're very happy that this talented, gifted studio has the chance to continue and can't wait to see what they will make next."
News of the split comes a week after Paradox wrote down the development costs for The Lamplighters League and confirmed layoffs took place at HBS earlier in the year. The title's performance led to projected losses of $22.8 million for Paradox's Q4 2023.