Starbreeze’s just-released Q1 monetary report paints an unlucky image of the studio’s present monetary well being.
The report states that the studio turned internet gross sales of SEK 47.eight million (round US$5 million), however that the corporate’s total losses got here to SEK 167.Three 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.
This replace follows six very publicly troublesome months for the unbiased Swedish growth workforce. In December final yr, Starbreeze was raided by Swedish authorities. Following this, on December 3, Starbreeze filed for reconstruction and changed their CEO.
Then, in February, the workforce’s Walking Dead game was effectively cancelled, regardless of having already launched on Steam. Skybound Entertainment cancelled the contract because it “did not meet the standards” anticipated.
In the report, this case is talked about briefly: “The rights owner, Skybound, terminated the license agreement for the title Overkill’s The Walking Dead. Starbreeze disputes the termination.”
In a press release on the second web page of the report, performing CEO Mikael Nermark outlines plans for the studio’s instant 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”.
Payday 3 was introduced again in 2016, and a yr later we had been instructed that it was seemingly a while away yet.
For now, the plan is to proceed operations. “In the company’s judgment”, the report reads, “it will be possible to conclude the ongoing reconstructions of the parent company and the relevant subsidiaries to the effect that the businesses can continue operating.”
Our ideas are with any and all affected workforce members impacted by this uncertainty, and people who really feel that their jobs and monetary securities are in danger. Starbreeze employs 580 employees as of this report; hopefully the studio can discover a solution to survive for his or her sake.
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