Starbreeze Q1 2022 Financial Results

Starbreeze’s financial performance during the first quarter of 2022 was characterized by a significant increase in losses, highlighting the company’s ongoing fiscal challenges despite the enduring popularity of its core franchise. The company reported a pre-tax loss of SEK 23.8 million ($2.34 million), representing a 470% increase compared to the same period in 2021. Net sales for the quarter reached SEK 23.5 million ($2.3 million), a 15.7% decline year-over-year, with PC sales contributing SEK 19 million and console sales accounting for SEK 4.4 million.

The decline in revenue was mirrored by a softening in the performance of the Payday franchise on Steam, where base game sales fell 24% and DLC sales dropped 11%. Despite these figures, the Payday franchise maintains a strong market presence, boasting over 36 million lifetime players and more than $300 million in total revenue. North America remains the company’s primary market, representing 45% of its Steam revenue, followed by Europe at 22%.

In a subsequent strategic pivot, the company announced the cancellation of Project Baxter, a cooperative title set in the Dungeons & Dragons universe. This decision resulted in a $27.3 million write-off, a figure that exceeds the company’s total revenue for the 2024 fiscal year. To mitigate the impact of this cancellation, Starbreeze has initiated a restructuring plan that includes the layoff of 44 employees and a renewed focus on expanding the Payday 3 development team. The company’s long-term strategy centers on leveraging its expertise in games-as-a-service models to build proprietary intellectual property and ensure sustainable, differentiated revenue streams.