Cities Skylines Development Shifts to Iceflake Studios as Paradox Interactive and Colossal Order End 15 Year Partnership

Paradox Interactive and Colossal Order have officially announced the end of their fifteen year collaboration, marking a major strategic shift for the Cities Skylines franchise. Colossal Order will move on to pursue new creative projects while Finland based Iceflake Studios, a Paradox owned developer, will take full responsibility for the future of the series.

The announcement was shared through a detailed update on the Paradox Interactive forums, emphasizing that the decision was reached collectively and with consideration for the long term direction of the Cities Skylines brand. According to Paradox, the transition aims to ensure “the strongest possible future for the Cities Skylines franchise.”

The post outlines the new direction clearly

“Development of the Cities Skylines franchise will move to a different studio under Paradox Interactive’s leadership and Colossal Order looks forward to building on its experience across new projects and exploring new creative opportunities. Both companies are excited for what the future holds while remaining deeply appreciative of our shared history and grateful to the Cities’ community.”

Cities Skylines 2 launched in 2023 to what many fans considered a troubled release. Missing content at launch and significant performance issues overshadowed the anticipated sequel, and despite ongoing patches and a published roadmap, community reception remains mixed. The game currently holds a “Mixed” rating on Steam across both recent and lifetime reviews, signaling ongoing sentiment challenges Colossal Order worked to resolve over the last two years.

For Colossal Order, stepping away from Cities Skylines marks the end of an era. With four games, dozens of expansions, and a massive global community built over a decade, their tenure shaped the entire modern city simulation landscape. Paradox deputy CEO Mattias Lilja reflected on the partnership:

“Our partnership with Colossal Order is one of the longest running relationships we’ve enjoyed here at Paradox. Four games, dozens of expansions, and a community of millions of Cities players; it’s remarkable how much we’ve achieved together. We have deep respect for the Colossal Order team and we look forward to seeing where they go from here. On our end, we’re eager to continue working for the passionate Cities Skylines community and make sure to provide them with more content and new experiences.”

The transition period will take place gradually. Colossal Order will continue supporting Cities Skylines 2 throughout the remainder of 2025, implementing several additional updates before stepping back. In 2026, Iceflake Studios will formally assume full control of development. Colossal Order will remain involved only to ensure a smooth and stable handover. Iceflake is also tasked with finishing the long awaited console version of Cities Skylines 2, though Paradox confirmed there is no new delay announcement tied to this studio shift.

Lasse Liljedahl, studio manager at Iceflake Studios, shared the team’s perspective on inheriting the franchise

“Taking the reins on a genre leading franchise like Cities is an immense honor and a great responsibility. There’s a huge, loyal community out there and I want to say to every member of that community that we will humbly carry this legacy with respect, together with all of you. Iceflake has the capacity and capability to get started. We have a decade worth of experience from making city building and management games. 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 of this incredible game.”

With Iceflake Studios stepping in, the Cities Skylines series enters a new phase that aims to balance legacy, community trust, and a much needed reinvention after the challenges surrounding Cities Skylines 2. The transition may also offer the franchise a fresh creative direction while giving Colossal Order the freedom to explore new ideas beyond the city building genre.

What are your thoughts on Paradox shifting Cities Skylines to Iceflake Studios? Does this give you more confidence in the future of the franchise? Share your insights below.