Starbreeze has filed for reconstruction, a sure sign of the Swedish developer’s financial struggle. The recently released Overkill’s The Walking Dead sold poorly and made a tough situation worse for the 20-year-old studio.
Starbreeze Studios has filed for reconstruction following financial struggles. The 20-year-old Swedish video game developer and publisher announced the move today. CEO Bo Andersson also resigned from his position and from the company board of directors.
The company filed for reconstruction in the Stockholm District Court on December 3,2018. The recently released Overkill’s The Walking Dead fell short of its sales target, and has the company expecting a shortfall of cash come January 2019. Late last month, Starbreeze began reviewing costs and refocusing on “core business.” While these actions have yet to be implemented in a meaningful way, most are expected to take place in the next fiscal year, the reconstruction filing suggests Starbreeze is in worse shape than expected.
