Paradox Interactive and Colossal Order have mutually decided to end their long-standing partnership, a move described as being made thoughtfully and in the best interest of both parties. For more than 15 years, the two entities have collaborated on the Cities: Skylines franchise. Following this decision, Colossal Order will pursue “new creative opportunities.” The development of Cities: Skylines 2 will now be handled by Iceflake Studios, one of Paradox’s internal game studios based in Finland.

The sequel to the city-building game debuted in October 2023 but faced significant criticism due to performance issues at launch. Furthermore, the console editions are still in development and have encountered delays.

Colossal Order’s CEO, Mariina Hallikainen, acknowledged the partnership in a recent statement. She reflected on the journey that began with Cities in Motion and expressed gratitude to Paradox and the game’s dedicated community. Hallikainen expressed confidence in the franchise’s future under Paradox’s guidance and enthusiasm for working on new projects that align with the company’s vision.

Mattias Lilja, the deputy CEO of Paradox Interactive, emphasized the significance of the relationship with Colossal Order, highlighting the successful collaboration that produced four games, numerous expansions, and a vibrant community. He expressed respect for the Colossal Order team and affirmed the company’s commitment to providing richer experiences for Cities: Skylines fans.

Iceflake Studios will assume full responsibility for ongoing development of Cities: Skylines 2, including free updates, work on the game editor, upcoming console versions, and future expansions starting in early 2026. Lasse Liljedahl, the studio manager at Iceflake, conveyed the honor and responsibility of taking over a leading franchise and reassured the loyal community of their commitment to respecting the game’s legacy while looking forward to revealing future plans.

Meanwhile, Colossal Order will finalize several projects, including the upcoming Bike Patch, enhancements to Old Town buildings, bug fixes, and general game improvements.

Paradox has faced challenges in recent years, having parted ways with the developer of Prison Architect 2 and abruptly canceling its life simulation game, Life By You. In light of this transition, the company aims to better engage with its fan base, starting with small initiatives and prioritizing core values while also embracing innovation and new ideas.

Last month, Paradox released the much-anticipated action role-playing game, Vampire: The Masquerade – Bloodlines, which received mixed reviews, indicating that there is still work to be done in meeting player expectations.