What's Happening?
Starbreeze, the developer known for its Payday series, has announced the cancellation of its Dungeons & Dragons game, previously under the working title Project Baxter. This decision follows a strategic review by the company's board and management, which concluded that resources would be better allocated to the Payday franchise. As a result, Starbreeze is taking an impairment charge of approximately SEK 255 million ($27.2 million). The company is also undergoing layoffs, with about 44 developers, including full-time employees and contractors, losing their jobs. Some of these developers will transition to other teams within Starbreeze, while others will receive support to find new roles in the industry. The company aims to focus on expanding the Payday franchise and the heisting genre, with plans to make Payday 3 a scalable live-engagement platform.
Why It's Important?
The cancellation of Project Baxter and the subsequent layoffs highlight the challenges and strategic decisions faced by game developers in a competitive industry. By concentrating on the Payday franchise, Starbreeze aims to leverage its established success and potential for growth in the heisting genre. This move could strengthen Starbreeze's market position and financial stability, as the company seeks to become cash-flow positive by 2026. The decision also underscores the importance of focusing on core intellectual properties that have proven successful, as opposed to diversifying into new, untested projects. For the affected employees, the layoffs represent a significant career disruption, although Starbreeze's commitment to providing support may mitigate some of the impact.
What's Next?
Starbreeze plans to expand the Payday franchise with new games and experiences, including spin-offs and narrative-driven projects. The company is also exploring franchise expansion to new platforms and will continue to take on work-for-hire projects to supplement revenue. The development team for Payday 3 is expected to grow, with ongoing updates and improvements aimed at enhancing player engagement. As Starbreeze focuses on delivering lasting value to players, the company hopes to drive sustainable growth and maintain its leadership in the heisting genre.
