Starbreeze files for reconstruction

It's been a rough couple of years for Starbreeze Studios with Raid: World War II and Overkill's The Walking Dead failing to live up to expectations. As the company looked to be out of funds in January the board has decided to file for reconstruction of Starbreeze and five subsidiaries (Starbreeze Publishing, Starbreeze Production, Starbreeze Studios, Enterspace and Enterspace International). It was also announced that CEO and founder Bo Andersson steps down and leaves the board of directors, he is replaced as CEO by Mikael Nermark.

"In this phase, Starbreeze needs a different kind of leadership and we have therefore decided to ask Mikael Nermark to take on the full responsibility with our full mandate for this new phase," says Starbreeze Chairman Michael Hjorth.

It remains to be seen whether Starbreeze can turn things around, but needless to say, there's likely going to be some major cutbacks as the company looks to cut costs during the reconstruction phase. Employees will still get wages during the process, but the company will not pay outside suppliers.

Nothing has been communicated how this will affect future planned content for Overkill's The Walking Dead or the development of Payday 3. It is also unknown how this affects third-party publishing plans for the likes of System Shock 3 and Psychonauts 2...