In an announcement published on 28th December, the developer revealed a "global development, license and distribution agreement" with Tencent, which is solely related to the next game they are working on, alongside Alan Wake 2.
Remedy emphasizes that this strategic partnership has nothing to do with the status of the company, and the agreement is only about the new game.
What game is Remedy making with Tencent?
Remedy reveals that this new IP is still in the proof-of-concept phase, which means that the game is very early in development.
Codenamed "Vanguard" (not to be confused with Activision's Call of Duty: Vanguard, the two games are not related), the game will be a free-to-play, co-op PvE shooter.
Remedy states that their goal is to use their "narrative expertise" and combine it with action gameplay tailored for "an immersive multiplayer experience."
Per the agreement, Remedy and Tencent are co-financing the game's development, with Remedy stating that Vanguard's development budget is "in the range of a typical Remedy AAA game budget."
Remedy is currently developing Vanguard in the Unreal Engine for PC and console platforms, while Tencent will develop a mobile version of the game, for which they will cover the cost of developing and publishing.
Funds for the first year of live operations support for the game (PC and console version) are also secured as a part of the agreement.
"Vanguard marks Remedy's first entry into Games-as-a-Service business model, executed by our top tier team of free-to-play experts. We are building something new and exciting for co-operative multiplayer space, on top of Remedy's strengths, " stated Tero Virtala, CEO of Remedy Entertainment. "We are excited for this long-term partnership with Tencent and with confidence can say that it is an excellent fit in supporting Vanguard's ambitious plans."
- Read more: China's new regulations limit kids' online gaming time to just one hour a day on weekends only
The Chinese entertainment giant has been on a shopping spree in 2021, acquiring renowned western studios such as Turtle Rock Studios (Back 4 Blood), Fatshark Games (Warhammer: Vermintide), Sumo Digital (Team Sonic Racing), Yager Development, Stunlock Studios, and Wake Up Interactive.
With the Chinese video game market being targeted by Chinese authorities with rigorous new laws and regulations aiming the curb "gaming addiction", Tencent has shifted its focus over the last couple of years towards foreign markets and this partnership with Remedy is a continuation of that strategy.
Don't forget to check out our general video games section for industry news, guides, leaks and much more.
Featured image courtesy of Remedy Entertainment / Tencent.