Anyone who’s paying attention knows that Swedish company Starbreeze is in trouble. OTWD (Overkill’s The Walking Dead) has been an issue from the beginning. With the massive amount of production issues, and a ton of financial losses in 2018 and previous years, the company has been on the rocks for a while. The company lost millions in 2018, and as of yesterday, their contract of support from Skybound Entertainment was canned.
The developer/publisher remains defiant though, and in a new announcement on their site, Starbreeze admits the group doesn’t want to give up on Overkill’s The Walking Dead just yet. Although it’s going to be very hard to keep supporting a game that only has a few hundred active players. Overkill’s The Walking Dead has also now been removed from Steam, so you can’t even buy it.
Starbreeze’s statement in full on its website said the following:
Starbreeze has a dialogue with Skybound with the ambition to reach a solution. Starbreeze has been informed that the product likely will be disabled for further sales on the platform Steam and should Starbreeze and Skybound not reach a solution, it would mean that the game will not be made available for sale again on Steam, and that the console version would not be released.
Sales related to OTWD amounted to SEK 34.1 million in the fourth quarter 2018. Costs related to development of OTWD has so far exceeded revenue. There are no assets related to OTWD in Starbreeze Group balance sheet.
Starbreeze recently filed for an extension on their reconstruction period. This amounts to a delay tactic to allow the company time to attempt to rebound in terms of revenue. Although this rebound is very much unlikely to happen now as their games project, the one they banked heavily on, has flopped so hard it left a crater. Stick a fork in this zambambo, they’re done and they’re not coming back.