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Payday developer Starbreeze could shut down without added funding

Published: 20:03, 11 May 2019
Starbreeze Studios
Picture of a guy from Payday and Starbreeze logo
Payday and Starbreeze Studios

Recent troubles have taken a toll on the Swedish developer and publisher Starbreeze, and their latest financial reports paint a grim picture of a company that may have to shut down unless they come up with additional funding in 2019.

"The company currently lacks sufficient secured funds to guarantee continued operations for the next 12 months and is expected to have a liquidity shortfall before mid-year 2019 if no additional funds are provided. These conditions indicate that there are significant uncertainties that can lead to significant doubts about the company’s ability to continue its business", the report states.

Starbreeze ended the first quarter of the current financial year with a loss of $12.8K, but the expenses will be mounting.

Nevertheless, Starbreeze's acting CEO Mikael Nermark wrote that the company is prepared for the challenges ahead. In Payday, he said, they have a very strong asset and a solid foundation upon which the company's future will be built.

Even before looking at the report, there's no doubt Starbreeze haven't had much luck since the start of 2019, even though their troubles started even earlier than that. 

Back in December 2018 and following a severe stock drop, Starbreeze's offices were raided and one person arrested on the suspicion of insider trading.

Overkill's The Walking Dead hasn't gone according to plan either and Overkill's magic from Payday didn't click on Skybound's franchise.

Starbreeze named Overkill's take on the Walking Dead as one of the main culprits for disappointing Q4 results, and the game earned only $3.7 million , compared to $2.2 million brought in by Payday 2. This paints more than a good picture, considering that Payday is nearing its sixth birthday.

The company also sold the right to System Shock 3 back to OtherSide , and it all ended in Skybound terminating their contract with Starbreeze.

Apparently, Overkill's The Walking Dead didn't meet the quality standards that were agreed upon, although that was evident from the less than stellar reception.

Starbreeze Overkill's The Walking Dead
Overkill's The Walking Dead

You can find Starbreeze's full financial report here .

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