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After the bungled launch of Cities: Skylines 2, Paradox Interactive and Colossal Order part ways as development moves to a new studio

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After the bungled launch of Cities: Skylines 2, Paradox Interactive and Colossal Order part ways as development moves to a new studio

Paradox Interactive and Cities: Skylines developer Colossal Order have mutually split: Colossal will continue supporting Cities: Skylines 2 through 2026 (including a Bike Patch and beta asset-editor support), after which Paradox’s internal Tampere studio Iceflake—acquired in 2020 and with some city-builder experience—will assume all existing and future development. The move follows a troubled Skylines 2 launch that was poorly optimized, missed features and long DLC delays that damaged the franchise’s reputation, and comes amid a pattern of Paradox replacing external developers on underperforming titles. Management says the handover will be “smooth” and Iceflake will outline plans soon, but the change highlights operational risk to live-revenue streams and brand value while offering Paradox potential cost/control benefits from internalizing development.

Analysis

Paradox Interactive and developer Colossal Order have mutually split: Colossal Order will continue to support Cities: Skylines 2 through 2026—delivering a Bike Patch and a beta implementation of asset support for the Editor—after which Paradox’s internal Tampere studio Iceflake (acquired 2020) will assume all existing and future development. Iceflake is described as having a background in mobile games and released Surviving the Aftermath (2021), and its studio manager claims a decade of city-building experience; Colossal Order’s CEO says the studio will pursue new projects aligned with its long‑term vision. Cities: Skylines 2 launched in a poorly optimised state with missing features and protracted DLC delays (the Bridges and Ports expansion was delayed by more than a year), and Paradox conceded the release was premature. Paradox has repeatedly reassigned or replaced external developers on other troubled titles (Prison Architect 2 to Kokku, Bloodlines 2 to The Chinese Room, cancellation of Life by You), signaling a pattern of remediation that points to broader execution risk within the publisher’s live-service pipeline. The immediate implication is elevated operational and reputational risk to Skylines 2’s live‑revenue and community trust during the transition, while internalizing development could offer Paradox tighter control and cost synergies if Iceflake stabilises quality. Near-term catalysts to monitor are the timely delivery and reception of the Bike Patch and asset‑editor beta, Iceflake’s public roadmap for Skylines 2, and community sentiment; failure to show measurable improvement would prolong monetisation and brand drag.