Starbreeze Studios, the Swedish company behind Payday 2 and Chronicles of Riddick: Assault on Dark Athena, have asked for an extension to the time allotted them by the Stockholm District Court to prevent them from going into insolvency. In Sweden companies about to declare bankruptcy may apply for reconstruction, a period of time which allows companies to re-organize themselves to help prevent a financial collapse. Starbreeze originally applied for the period back in December and was given until March 3 to restructure themselves and pay off outstanding debts. Now the company has asked for a further 3 months to try and fix their financial problems and keep the company afloat.
Starbreeze’s financial woes have been exacerbated by the poor performance of Overkill’s The Walking Dead, the co-operative first-person shooter based on the popular comic series turned AMC-produced television show. Starbreeze released a press release for shareholders shortly after the game came out stating that the game had not brought in as much revenue as the company had been hoping, saying that the game had sold well in places where it had been cheaper such as Russia and China.
Since then Starbreeze has been fighting tooth and nail to try and make enough money to keep afloat. They recently sold the publishing rights to System Shock 3 back to Otherside Entertainment to try and recoup losses and have further delayed a console port of Overkill’s The Walking Dead to save money. They have made statements that the new extension would allow them to focus on what they do best which is publishing and developing video games, a method they’re hoping to use to turn their fortunes around. It is likely that if the company is given this extension they will spend the time pushing out any games they have waiting to try and recoup costs and pay off their debts.
What do you think of Starbreeze’s financial troubles? Do you think they could have done something to avoid this problem? Let us know in the comments down below.