Although Alan Wake was never a best seller for Remedy Entertainment, it has proven to be a very important franchise for the studio. Originally developed as an Xbox 360 exclusive, the action game got off to a slow start due to releasing the same week as Rockstar Games' newest title, Red Dead Redemption. However, Alan Wake achieved positive reviews and thanks to strong word of mouth, the game quickly went on to become a fan favorite title.
Following DLC and a release on PC, Remedy had plans to work on a sequel though work on that had been postponed and instead the studio created a standalone project called Alan Wake's American Nightmare. While Alan Wake 2 had a working prototype, the first game's disappointing sales Microsoft pulled funding and started looking for something else from the studio which led to Quantum Break. With Control going on to be massively successful, a proper sequel to Alan Wake appears to now be back on the table.
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The latest Alan Wake rumor comes from Jeff Grubb who is well connected and has a track record of revealing unannounced projects. During a recent Game Mess Show on his Twitch channel, Grubb admitted that he's heard Remedy has partnered up with Epic Games to work on Alan Wake 2. While fans have eagerly been waiting for a true sequel to the original game, Grubb mentioned that Alan Wake 2 should be the follow up that players have been waiting for.
As for how Epic Games got involved, there was apparently a bidding war over who would get publishing rights and Epic seemingly presented the biggest deal. Unfortunately, the details surrounding the deal as well as plans for when a possible announcement or reveal could be made are not known at this time. For as good as this sounds, players should take this with a grain of salt until something official is announced.
The return of Alan Wake seems to have been a foregone conclusion considering that with the previous two game releases, Remedy has attempted to tie everything together into a connected universe. Quantum Break featured plenty of Remedy Entertainment Easter eggs, though Control went a step further by creating a dedicated expansion called AWE that was a crossover with the Alan Wake franchise. The story of the first game was tied into the events of Control and even had both protagonists interacting with one another. With such a renewed focus on Alan Wake, most fans figured it was probably only a matter of time before Remedy returned to it's popular IP.
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Source: Jeff Grubb