Paradox Interactive and Colossal Order Part Ways: Cities: Skylines 2 Development Transfers to Iceflake Studios

In a major shift for the city-building franchise, Paradox Interactive and developer Colossal Order have announced a mutual decision to end their 15-year partnership. As Colossal Order prepares to pursue "new creative opportunities," all ongoing development for Cities: Skylines 2 will be transferred to fellow Finnish studio, Iceflake Studios, effective early 2026.

The collaboration between Paradox and Colossal Order has been one of the longest-running and most successful partnerships in the simulation genre, yielding the Cities in Motion series and the critically acclaimed Cities: Skylines franchise. The publisher and developer stressed that the separation was "made thoughtfully and in the interest of both teams."

Mariina Hallikainen, CEO of Colossal Order, expressed gratitude for the journey:

"For over fifteen years, the Cities Series and our partnership with Paradox have been a defining part of our journey at Colossal Order... We want to thank everyone at Paradox for their trust and collaboration, and of course the community for the incredible support that has made Cities what it is today."

This transition comes after a tumultuous period for the franchise sequel, Cities: Skylines 2, which was met with heavy criticism upon its October 2023 launch due to significant performance issues. The console versions of the game also remain distant following troubled development.

Iceflake Studios Takes the Helm

Iceflake Studios, known for developing management and simulation games, will assume responsibility for all aspects of Cities: Skylines 2 development starting in 2026. This includes:

• Continuous free updates.

• Ongoing work on the Editor functionality.

• Delivery of the forthcoming console editions.

• Production of all future expansions.

Lasse Liljedahl, Studio Manager of Iceflake Studios, acknowledged the gravity of the task ahead:

"Taking the reins on a genre-leading franchise like Cities is an immense honour and a great responsibility... Iceflake has the capacity and capability to get started. We have a decade worth of experience from making city building and management games."

Colossal Order will remain involved temporarily to finalize current tasks, including the forthcoming Bike Patch, Old Town buildings, bug fixes, and general improvements.

The split is the latest in a series of setbacks for Paradox Interactive, which recently saw the cancellation of its Sims-like game Life By You and the end of its partnership with Prison Architect 2 developer Double Eleven. Paradox has indicated a shift toward more focused development, prioritizing core genre strengths and earlier fan feedback to mitigate future risks.