Starbreeze Ditches VR To Focus On Game Prod

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Starbreeze Ditches VR To Focus On Game Prod
December 12, 2018

Troubled company Starbreeze AB said on Wednesday it wants to concentrate its operational and financial resources on its core business: internal game development and publishing.

 

”We’re now focusing the business towards a portfolio consisting of a mix of internally developed games and publishing titles. We are humble for the task at hand, but our aim to build a qualitative company in the entertainment industry still stands, and the existing portfolio provides a good platform for our first-class teams,” said Starbreeze’s acting CEO, Mikael Nermark, in a press release.

 

The decision comes shortly after the Swedish company filed for reconstruction, along with five of its subsidiaries, due to “a shortage of liquidity.” Sales of its most recent game, “Overkill’s The Walking Dead,” were low, and it’s now working to reduce costs and sharpen its focus.

 

Two days after the filing, Swedish authorities raided the developer and arrested one person on suspicion of insider trading. The outgoing finance manager and outgoing CEO both reportedly sold their entire stake in the company in November. The company’s stock price tumbled about 80% afterwards.

 

Starbreeze’s renewed focus on internal development and publishing means it could be looking to ditch the third segment of its company — virtual reality tech and operations. Its VR projects include the StarVR headset, the location-based VR experience Enterspace, and the VR movie tech PresenZ.

 

Starbreeze said it’s currently looking for collaborations with external parties to ensure non-core operations “develop in a positive way.”

 

“Our shift to core enables a larger focus on our internal talents and teams, whilst improving internal organizational and development processes. Innovation and quality, and further on to deliver the best experiences for our players, will be our main goal in this process,” said Starbreeze chief development officer Stephane Decroix.

 

The company is now working to find partners to help finance its future operations. It will provide more details on its operational changes before the year’s end and expects to wrap up those changes by mid-2019.

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