Paradox Interactive has mutually ended its 15-year partnership with Colossal Order, the studio behind the Cities: Skylines series. Development of Cities: Skylines 2 will now shift to Paradox's internal studio Iceflake Studios starting in 2026. The move comes amid ongoing challenges for the city-building sequel, which launched in October 2023 to criticism over performance issues.
Partnership Ends After 15 Years
Paradox Interactive and Colossal Order have collaborated on the Cities series since Cities in Motion, producing four games and numerous expansions over more than 15 years. The decision to part ways was described as mutual and thoughtful, allowing Colossal Order to pursue new creative opportunities while ensuring the franchise's continuity under Paradox.
Cities: Skylines 2, released in October 2023, faced significant backlash for performance problems, with console versions still delayed due to development troubles. Colossal Order will complete remaining tasks, including the Bike Patch, Old Town buildings, bug fixes, and general improvements.
Development Handover to Iceflake Studios
Starting in 2026, Iceflake Studios—a Finnish developer focused on management games—will handle all ongoing work on Cities: Skylines 2. This includes free updates, enhancements to the Editor tool, console editions, and future expansions. Iceflake brings a decade of experience in city-building and management genres.
Statements from Key Figures
Mariina Hallikainen, CEO of Colossal Order, reflected on the partnership: "For over fifteen years, the Cities Series and our partnership with Paradox have been a defining part of our journey at Colossal Order. We're excited to channel our experience, creativity, and passion into new projects."
Mattias Lilja, deputy CEO of Paradox Interactive, added: "Our partnership with Colossal Order is one of the longest-running relationships we've enjoyed here at Paradox. We have deep respect for the Colossal Order team and we look forward to seeing where they go from here. We're eager to continue working for the passionate Cities: Skylines community."
Lasse Liljedahl, studio manager at Iceflake Studios, expressed enthusiasm: "Taking the reins on a genre-leading franchise like Cities is an immense honour. We see a strong foundation and so much potential waiting to be unleashed and I can't wait to show you what we have planned for the next chapter."
Broader Context at Paradox
This change aligns with recent difficulties at Paradox, including parting with Prison Architect 2 developer Double Eleven last year and canceling the Sims-like Life By You. The publisher aims to refocus on core strengths while managing risks more disciplinedly.