Starbreeze Currently Lacks the Funds to Continue Operating for Another Year

Starbreeze released their first quarter financial report for this year, and things are looking a bit grim for the studio. The studio has been in trouble for quite some time after Overkill's The Walking Dead failed to meet sales expectations, they also lost their CEO Bo Andersson shortly after, and they sold back the publishing rights to System Shock 3. On the opening page of their financial report, the company reveals that they do not have the funds to continue operating for another year:

Starbreeze and some of its subsidiaries have been in reconstruction since December 3, 2018. 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

starbreeze Studios logo

 

The company is still restructuring after a court order saw Swedish authorities raiding the studio's headquarters, and that is expected to continue through June 2019 as ordered by the Stockholm court. It is possible for Starbreeze to save itself, though things are looking rather grim.

"My main task is to secure financing for the company's future operations," reads a statement from acting CEO Mikael Nermark. "This involves both long-term financing we can use to build the Starbreeze of the future, but also making sure that the assets we have determined are unrelated to the core business are managed in a commercially viable way. Once this financing has been secured, we will be able to look ahead and present a more detailed strategy for the future."

About Madeline Ricchiuto

Madeline Ricchiuto is a gamer, comics enthusiast, bad horror movie connoisseur, writer and generally sarcastic human. She also really likes cats and is now Head Games Writer at Bleeding Cool.

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