After the massive failure of their latest title Overkill’s The Walking Dead, Starbreeze has filed up for ‘Reconstruction’ in order to stay in business.
Starbreeze has not seen a single success in the recent times specially with the commercial failure of Overkill’s The Walking Dead where the company was expecting to make a mark in the industry once again.
Sadly, the game turned out below expectations and has suffered massively in terms of sales leading to such a desperate situation where the developer Starbreeze has filed for Reconstruction with Stockholm District Court.
In a recent press release, Starbreeze said that they have made this decision on a shortage of liquidity. It was a necessary step to give them enough time in order to find some solid investment and create a stable long-term financial strategy. Their current financial targets for both 2018 and 2020 lay in shambles.
Starbreeze tried their best to attract more players to their latest title Overkill’s The Walking Dead by even offering a price cut on the title but sadly it was not enough and the company still had to opt for more serious measures to save itself from bankruptcy.
According to Starbreeze, during this ‘Reconstruction’ phase they will pay normal wages to their employees and operations will run like normal but the major impact will be on the suppliers’ side where they will be unable to make payments for already purchased goods or suppliers. According to the official report, Overkill’s The Walking Dead played a big part in this financial crisis.
The current CEO of Starbreeze Bo Andersson has also left the company with the reigns of the company now lying in Deputy CEO Mikeal Nermark’s hand. The Starbreeze chairman said that
In this phase, Starbreeze needs a different kind of leadership and we have therefore decided to ask Mikael Nermark to take on the full responsibility with our full mandate for this new phase.
The situation does not look good at this point. The future of Overkill series might be dead but it might also kill the Payday franchise which was a very decent franchise and one of Starbreeze’s most successful franchises as well. If the company finds itself some good enough investments, it will continue to survive otherwise the future is dark for the developer to survive.