According to Neowin, Paradox Interactive announced that Colossal Order, the original developer behind the Cities: Skylines franchise since 2015, is parting ways with the publisher in what’s being called a mutual decision. The studio change comes after Cities: Skylines II’s troubled PC launch featuring massive performance issues and bugs, plus indefinitely delayed Xbox Series X|S and PlayStation 5 ports that still haven’t released. Iceflake Studios, which previously worked with Paradox on Surviving the Aftermath, will take over development starting in 2026. Before completely exiting, Colossal Order will deliver a few more updates including bikes, Old Town buildings, and the long-awaited asset editor beta. Both Colossal Order CEO Mariina Hallikainen and Iceflake Studios manager Lasse Liljedahl expressed confidence in the transition, with the new developer promising to “humbly carry this legacy” forward.
The rocky road to this decision
Here’s the thing – this doesn’t feel like your typical “mutual parting.” Cities: Skylines II has been a mess since launch, and I think we’re seeing the fallout. The PC version was so broken at release that Paradox had to delay all DLC development just to focus on fixing core issues. And the console versions? They were supposed to launch in 2023 and we’re still waiting with no release date in sight. When your flagship city-builder can’t even run properly on modern hardware, something’s seriously wrong. Colossal Order basically spent the last year in damage control mode instead of building new content.
What Iceflake Studios brings to the table
So who is this new developer taking over? Iceflake Studios has “a decade worth of experience from making city building and management games” according to their studio manager. They’ve worked with Paradox before on Surviving the Aftermath, which gives them some familiarity with the publisher’s ecosystem. But let’s be real – taking over Cities: Skylines is a massive undertaking. The community is huge and passionate, and they’ve been burned by the sequel’s performance problems. Iceflake’s first big test will be delivering those missing console ports and convincing players they can do better than the original team. That’s a tough position to be in.
What happens now for players
For current Cities: Skylines II players, the immediate future looks like more of the same – Colossal Order will push out a few more updates through 2025 before handing over the keys. The asset editor beta is finally coming, which modders have been begging for since launch. But the real question is whether Iceflake can turn this ship around. They’re inheriting a game with serious technical debt and a skeptical player base. And they’ve got to navigate the complex world of Paradox’s DLC strategy while keeping the core experience stable. It’s a tall order for any studio, even an experienced one.
business-picture”>The bigger business picture
This transition speaks volumes about how game development partnerships can evolve – or unravel – under pressure. Colossal Order wants to “pursue new projects that align with our long-term vision,” which basically means they’re ready to move on from the franchise they created. Paradox gets to keep the valuable Cities: Skylines IP while bringing in fresh development talent. But the real test will be whether this change actually improves the game’s quality and delivery timeline. When you’re dealing with complex simulation software that needs to run across multiple platforms, having the right development expertise is crucial. The transition period through 2025 will be critical for setting expectations and rebuilding trust with a community that’s seen plenty of broken promises already.
