Sections

Starbreeze applies for extension on reconstruction period

Troubled publisher wants until June to “focus on its core business of internal game development and publishing”

Starbreeze has applied to the Stockholm District Court for an extension on the reconstruction period it was granted to avoid collapse.

The publisher previously applied for reconstruction -- a rescue procedure available to Swedish companies facing insolvency -- back in December, which the court approved. The reconstruction period runs up to March 3, 2019.

However, Starbreeze has now requested an additional three months to continue these efforts. The administrator assigned to the publisher "supports the request", according to a statement.

The firm reiterated that reconstruction will enable it to "focus on its core business of internal game development and publishing", adding that it is looking for collaborations with external parties so that "non-core operations develop in a positive way."

At the root of Starbreeze's problems is the poor performance of Overkill's The Walking Dead, which finally launched in November 2018 after a long development. In its opening months, it only generated $3.7 million for the publisher, contributing to rough financials for the publisher.

The console version has been delayed -- potentially for a second time, as we reported this morning.

Starbreeze recently sold the publishing rights for System Shock 3 back to OtherSide Entertainment, recouping its costs contributing to the game's development, but retains the rights for Psychonauts 2, due for release later this year. It has also teamed up with Universal for a Payday mobile game.

More stories

Starbreeze net sales up to almost $4m

Losses and EBITDA stabilise following a “one-off” decline last quarter, Payday 3 still on track

By Danielle Partis

Former Starbreeze CEO Mikael Nermark has died

The 50-year-old was diagnosed with cancer last year

By Marie Dealessandri

Latest comments

Sign in to contribute

Need an account? Register now.