Did Xbox Make a Mistake by Releasing the Rights of ‘Alan Wake’ Back to Remedy Entertainment?

Alan Wake 2 has surprised fans and critics alike. The title from Remedy Entertainment has completely overhauled every critic’s Game of the Year list. Many are comparing the survival horror game to be more like a movie than a game, praising its graphics. Amidst all this, netizens have started to wonder – did Xbox make a mistake by letting the Alan Wake IP go?

Xbox is emerging as the leader of the gaming industry after acquiring Activision Blizzard King (ABK) for approximately $69 billion. With this, the console makers have completed the biggest acquisition in the video game industry. However, netizens are still thinking about a decision they made in the past. And it has come to bite Xbox back, as Alan Wake 2 is on the path to becoming a smash hit.

What happened between Microsoft and Alan Wake creators?

While many fans are enjoying the second entry of Alan Wake IP, they don’t know the full story behind it. The game has been created and developed by Remedy Entertainment, who are known for creating Quantum Break, Max Payne, and Control. However, the publishing rights of the Alan Wake IP completely belonged to Microsoft Xbox until 2019. This meant even if Remedy developed a sequel, Microsoft had every right to select its release date. And many industry insiders thought Microsoft was preventing a sequel from being made. Alan Wake 2 had been in development, but industry insiders claim Microsoft declined to fund it.

In July 2019, Microsoft released the rights to the title back to Remedy Entertainment. This allowed Remedy to complete a sequel and release it now, 13 years after the first entry. Netizens are now targeting Xbox for throwing a wrench in the development of the sequel of Alan Wake. They are taking another example of Marvel Games to criticize Xbox.

After Marvel Games severed their ties with Activision to look for a better partnership, they approached both Xbox and PlayStation. However, Microsoft decided to decline this offer, claiming they were focusing on their own IPs for the moment. This led to PlayStation taking up the offer, and we all know the rest. Marvel’s Spider-Man 2 is on its way to becoming the biggest exclusive title for PlayStation.

With Xbox letting both Alan Wake 2 and Marvel’s Spider-Man 2 go, the concerns of netizens are a fair demand. However, before jumping to conclusions, we should analyze the history of Xbox to better understand why its executives made such decisions. And the year 2014 becomes a crucial one in it.

Xbox then vs. Xbox now

Many fans consider Microsoft’s gaming division to be the strongest currently, all thanks to their $69 billion acquisition. With heavyweights like Bethesda, Activision, and Xbox under the same umbrella, Microsoft’s gaming division belittles all other competitors. However, this was not the situation Microsoft was facing almost a decade ago.

During the financial year 2014, Microsoft wasn’t sure whether to keep the Xbox division alive or not. It was a loss-making department for them and was heavily under-funded. Phil Spencer had to regain the trust of the Microsoft board again to bring the division to where it is now. And it took him almost 5 years to rebuild the brand.

During this time period, survival was the main priority of the division. Due to this limitation, the Alan Wake IP had to suffer. Furthermore, the low sales of previous Remedy releases like Quantum Break and Alan Wake also added fuel to the fire. The Microsoft executives were hesitant to green-light a sequel and had to eventually let the Alan Wake IP go back to Remedy Entertainment. In hindsight, they sure would have wanted to retain the IP for themselves.

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But now Xbox is back on its feet. They had a stellar year with the release of Bethesda’s Starfield, exclusive to their console. Furthermore, they made a huge step forward by acquiring Activision Blizzard King for $69 billion. They are now focusing on developing their brand on cloud gaming and mobile gaming, as these industries are expected to boom in the coming years.

Did Microsoft make a mistake by letting Alan Wake IP go?

Considering all the factors, the short answer to this question is – Yes, Microsoft Xbox made a mistake by letting the Alan Wake IP walk away as its new entry is pulling many gaming fans. However, Nintendo and PlayStation have also turned down titles that went on to be successful. On the other hand, they also have titles like The Legend of Zelda and Marvel’s Spider-Man 2.

So at the end of the day, fans should enjoy the fact Alan Wake 2 did eventually arrive on Xbox consoles. As no big corporation is going to make all the right moves.

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