Canada-based multiplatform games developer and publisher Behaviour Interactive has acquired Red Hook Studios, a PC & Console games developer from Canada, for an undisclosed sum.
Founded in 2013, Red Hook Studios gained recognition for its turn-based roguelike game series, Darkest Dungeon, which the studio both developed and self-published. Launched in 2016, the game has continued to receive support through DLCs and has been ported to multiple platforms, including PlayStation, Xbox, Nintendo Switch, and iOS.
In 2023, the studio released Darkest Dungeon 2. While it didn’t quite reach the acclaim of its predecessor, it still performed well. Combined, the series has sold over almost seven million units worldwide.
According to VGInsights, the first entry of the series outperforms its sequel in terms of units sold. Nevertheless, seeing long-term performance of the games due to LiveOps support of the developers, the picture might be different in the future.
This is the fifth studio, Behaviour Interactive, best known for its Dead by Daylight series, has acquired since 2022:
— In May’22 the company acquired US-based PC & Сonsole games developer Midwinter Entertainment — the creators of F2P shooter Scavengers.
— In Feb’23 it announced the acquisition of UK-based third-party development studio SockMonkey Studios.
— In Aug’23 Behaviour Interactive acquired Codeglue, the Netherlands-based games developer of PC & Console games.
— Most recently, in Mar’24, the studio acquired Canada-based multimedia production firm Fly Studio.
As a result of these deals and the company’s rapid expansion, it grew from 575 employees to 1,300 over the past five years. However, this active growth stage seems to be over now.
A few months ago, Behaviour Interactive laid off 95 employees. However, even bigger news came just a couple of weeks ago: the company canceled its Dead by Daylight spinoff, Project T, and shut down Midwinter Entertainment—a studio they had acquired just two years prior.
The story is reminiscent of what happened with Chile-based studio Wanako Games. In 2008, it was acquired by Behaviour Interactive (called A2M at that time) from Activision Blizzard. However, the studio was ultimately closed.
It seems that, apart from acquiring a well-known IP, one of the main reasons for the acquisition is Red Hook Studios’ ability to support its games long-term with LiveOps and continue generating sales years after launch. Potentially, this experience can help with the support of LiveOps-focused Dead by Daylight, but there is more.
The current competition makes it increasingly difficult to release new projects, which are the primary revenue drivers for any premium game developer. Red Hook Games, however, has been in the market for over ten years with just two premium titles in its portfolio. By acquiring the studio, Behaviour Interactive not only secures the potential for a third installment in the series, which could be released in the coming years, but also gains a revenue-generating studio with an ongoing project still in the early stages of its LiveOps cycle. After all, the last Darkest Dungeon DLC came out 4 years after the release, and the sequel is just over a year now.
