Recently, at E3, we got the chance to catch up with the CEO of Paradox Interactive, Fredrik Wester to discuss the company's recent success with Magicka, Mount and Blade and King Arthur. Wester revealed that 90% of Paradox' revenue is now made through digital distribution sales. He describes the company's lack of reliance on retail as "a release," saying that store chains have "not been good for the creative part of the industry."
Wester told us that "this year we're close to ninety percent of our revenue being digital. Retail sales are like a bonus for us now. We don't really need retailers any more and that is a release because retailers have not been good for the industry. They've not been good for the creative part of the industry, for finding new cool games."
"People complain to publishers that there are only sequels on the market, but that's because retailers want to see sequels, because they can do their chart diagrams for how things sell and things like that. So one of the things preventing more creative gaming has been the retail challenge."
"I can only say this now because we're not depending on them, so it's really relieving to be able to say that."
Wester told us that Steam is Paradox' main partner, followed by Gamersgate. Paradox has recently had big success with Magicka, which as sold more than 600,000 copies since release, and is set to hit a million sales before the end of the year. The entire Paradox catalogue is currently enjoying a 90% as part of the Steam summer sale. You can grab the lot for $74.99 / £55.