Starbreeze – Getting a bit drafty in the vault

Well, I don’t know what to say really. I saw a headline regarding Starbreeze and figured I’d wander by to read the financial report myself. It’s… not good news.

The company currently lacks sufficient secured funds to guarantee continued operations for the next 12 months and is expected to have a liquidity shortfall before mid-year 2019 if no additional funds are provided.

I did manage to find the actual quote toward the end of the report. While it does not necessarily mean the end, this is what the end looks like. In terms that make more sense to the average person, such as myself, they may run out of cash to cover operating expenses by mid-year.

Naturally, they have every intention of preventing this, but their options seem to be limited. If there were ever a valid reason to actually rush a product out the door, I would say this would be it. Unfortunately, poor project management is how they ended up in this position, and if Payday 3 bombed they would pretty much be out of options. It is, in my opinion, the only good card they have left to play.

starbreezeq119chart

Now, just so we’re clear, these numbers are in Swedish Krona, and it’s currently about 10 Krona to 1 USD. Good news is that means it converts pretty easy by moving the decimal place one to the left. That is, losses before tax are 167m Krona or 16.7m USD.

It’s a sad story, but this is what happens when a smaller studio not backed by a giant like EA puts out a game comparable in quality and history to Anthem.

They have an annual meeting about a month from now. Since that’s the halfway point between now and mid-year, I’m guessing it will be pretty clear at that point what the future holds. I’m sure there are ways to keep things moving though I cannot easily tell if the confidence in their report is real or simply a brave face.

[UPDATE: After I wrote this, they kicked off an “event” on Steam with a free weekend, a 50% discount on the base game, and an 80% discount on the Ultimate Edition. If you have ever wanted to try it out, now is not only the time but potentially the last time. If anyone should actually be interested let me know and we can do some missions together.]

Sidenote, though, I love their actual report’s design and layout. Much better than your traditional “text document” kind of look.

Nevertheless, I have decided that I’m not likely to see Payday 3. At least, not one made by Starbreeze. I’m sure someone will see the value in picking up the rights in what currently seems to be an inevitable fire sale. If by some miracle they actually manage to pull through this, I might consider picking up some shares. If I can find a broker that deals with the Swedish exchange that is. My current one does not.

Y’all take care and, I dunno, don’t do what Bioware and Starbreeze did. It didn’t work.

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