Starbreeze CEO admits that they “currently lacks sufficient funds” for the next 12 months

Starbreeze, the Swedish game developer behind the Chronicles of Riddick and PayDay has released their Q1 results which makes for unfortunate reading with respect to their financial stability. The report states that the studio had net sales of SEK 47.8 million (around US$5 million), but that the company’s overall losses came to SEK 167.3 million (approx. US$17.3million).

“The company currently lacks sufficient secured funds to continue operating for the coming 12 months and a liquidity shortfall is expected before mid-year 2019 if no additional funds are provided”, the report reads.

The report is just another in a line of misfortunes for the company, with the company even being raided by Swedish Police suspecting insider trading was occurring. After this raid, the company filed for reconstruction and found themselves another CEO. Further compounding the misery, the team’s Walking Dead game was effectively cancelled in February, despite having already launched on Steam. Skybound Entertainment cancelled the contract as it “did not meet the standards” expected.

The Q1 report does go on to mention this act briefly,: “The rights owner, Skybound, terminated the license agreement for the title Overkill’s The Walking Dead. Starbreeze disputes the termination.” In a statement on the second page of the report, acting CEO Mikael Nermark outlines plans for the studio’s immediate future. “We decided in December 2018 to streamline operations and are now focused exclusively on the core business: game development and publishing of own and third-party games”, he says.

“We are in a challenging situation. I stand united with the entire Starbreeze team in the efforts to get the business in order. We have a very strong asset in Payday, which is the foundation upon which we will build Starbreeze future”.
marteebe
Martin enjoys spending time keeping up to date with the latest gaming news from around the internet and settling in to a good night of playing games with his friends. You will see him posting some of the latest gaming news and rumours on JoyFreak.
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