Payday 2 Publisher Starbreeze May Not Last Another Year

By Adam Bankhurst

PayDay 2 and Overkill's publisher Starbreeze, The Walking Dead, may no longer last a year after the story presented in its first quarter 2019 financial report, which shows gross profit and loss of operating profit.

As reported by MCV, Starbreeze fully recognized its "difficult situation" and revealed that it would have a "liquidity gap" by the middle of the year if no additional financing was obtained, which means that it would not have the cash needed to hold the funds. business in progress.

First quarter 2019 results showed sales generated from SEK 47.8 million (US $ 4.9 million), with PayDay 2 accounting for SEK 26.7 million (US $ 2.7 million), up from the previous period. However, EBITDA (earnings before interest, taxes, depreciation and amortization) recorded a loss of SEK -106.7 million (USD 11.1 million), more than double the loss compared to the same period of the first quarter of 2018.

Starbreeze said the decline in profits was "mainly due to lower net sales, higher administrative costs associated with rebuilding and the negative accounting impact of the sale of System Shock 3" for a total of 68 , SEK 1 million (US $ 7.1 million).

As for what can be done to prevent the closure of a company, the Acting CEO, Mikael Nermark, said that his main objective, to avoid the regrettable result, would be to obtain financing.

"My main task is to secure financing for the company's future operations," said Nermak. "This involves both long-term financing that we can use to build the Starbreeze of the future, but we also need to make sure that the assets we have determined are not related to the core business are managed so commercially viable. Once this funding is secured, we will be able to consider the future and present a more detailed strategy for the future. "

The poor sales of The Overkill's The Walking Dead and subsequent subsequent raids threatened by Starbreeze office officials after insider trading indices played an important role in Starbreeze's troubles.

Starbreeze Studios was founded in Stockholm, Sweden, in 1998 and has helped bring to life such games, such as The Riddick Chronicles: The Escape from Butcher Bay and Brothers: A Tale of Two Sons.

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Adam Bankhurst is a journalist who wishes the best of luck to Starbreeze and all its employees. He hopes he will find a way to survive. You can follow him on Twitter @ AdamBankhurst.