Starbreeze is in trouble after The Walking Dead underperforms

Joanna Estrada
December 4, 2018

Late last month Starbreeze announced it would be instituting a program to "review costs" and "focus on core business", which involves developing games internally and via subsidiaries like Payday 2 developer Overkill Software.

While the press release doesn't exhaustively detail what led to this outcome, it does mention that disappointing initial sales of Overkill's The Walking Dead helped put the company in this position. Further, both Andersson and Kristofer Arwin have resigned from the publisher's Board of Directors, a change that has taken immediate effect.

In a statement posted on Starbreeze's website, the company said that it had filed for reconstruction (the Swedish equivalent to a company going into administration) with the Stockholm District Court "based on a shortage of liquidity", and that financial targets set between Q4 2018 and 2020 would no longer be applicable.

Starbreeze has reassured staff that its reconstruction framework will include employee salaries, and that day-to-day operations will continue as usual. During this span, "no payments can be made to suppliers for services or goods relating to the period prior to the date of filing for reconstruction".

After the poor commercial sales of Overkill's The Walking Dead, Starbreeze slashed the price tag of the first-person zombie shooter from $60 down to $30 in an effort to push sales.

With Overkill's The Walking Dead yet to make its debut on consoles, things are looking rather bleak for the studio's owner, Starbreeze.

Reaction to the game on Steam has been mixed, which does not bode well for its planned February 5 release on PlayStation 4 and Xbox One.

Other companies are not affected, according to the news release.

Other reports by Click Lancashire

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