According to KitGuru.net, Paradox Interactive and Colossal Order have ended their decade-long partnership following Cities: Skylines 2’s troubled release. The original Cities: Skylines sold over 12 million copies since its 2015 debut, but the sequel launched in 2023 with significant performance problems that the developers had warned about beforehand. Finland-based Iceflake Studios is now taking over all development for Cities: Skylines 2, including free updates, the Editor tool, console editions, and future expansions. The decision was described as mutual and made “thoughtfully” to ensure the franchise’s future. The console version remains delayed while the PC version continues to struggle with technical issues.
What this development shakeup means
This is pretty massive news in the gaming world. Colossal Order and Paradox had been partners for over ten years, creating one of the most successful city-building franchises ever. Now suddenly, they’re splitting right when the sequel needs the most work. It makes you wonder – was this really “mutual” or did Paradox finally lose patience with the ongoing technical problems?
Here’s the thing about game development handovers: they’re rarely smooth. Iceflake Studios now inherits someone else’s codebase, someone else’s technical debt, and someone else’s disappointed player base. They’ll need to learn the entire architecture while simultaneously fixing bugs and delivering promised features. That’s like trying to repair a car while it’s still driving down the highway.
The technical challenges ahead
Cities: Skylines 2’s problems weren’t just minor bugs – we’re talking about fundamental performance issues that made the game nearly unplayable for many PC users. The team warned players beforehand, but the reality turned out worse than expected. And the console version? Basically vaporware at this point.
Now Iceflake has to tackle all of this while maintaining the game’s complex simulation systems. City builders are incredibly difficult to optimize because every citizen, vehicle, and building is part of an interconnected system. Change one thing and you risk breaking three others. It’s the ultimate technical balancing act.
What comes next for the franchise
The big question is whether Iceflake can actually turn this around. They’re not exactly household names, but sometimes fresh eyes on old problems can work miracles. They’ll need to prioritize fixing the core experience before even thinking about expansions or new content.
Meanwhile, Colossal Order moves on to… what exactly? After a decade of city-building games, maybe they want to try something completely different. Or maybe they’ll start fresh with a new publisher. Either way, this split marks the end of an era for one of gaming’s most successful partnerships. The full statements from all parties are available on the Paradox Interactive forums if you want to read between the lines yourself.
