Starbreeze CEO Bo Andersson has stepped down as the Swedish publisher and developer faces insolvency caused by the underwhelming sales of Overkill’s The Walking Dead. Things have progressively worsened for the company as authorities have since raided the firm’s headquarters, reportedly arresting someone for “gross insider crimes.”
In its first month on PC, Overkill’s The Walking Dead has failed to impress users, garnering a “Mixed” impression that has subsequently been reflected in its underwhelming sales. Falling drastically short of estimations, Starbreeze has adjusted its projections for the PlayStation 4 and Xbox One release in February, filing for reconstruction at the start of the week.
While the company is still required to pay its staff during this period, reconstruction allows the firm to take a step back from paying vendors and suppliers, helping to figure out its next step. Alongside the filing, Starbreeze has stated that it is replacing its CEO Bo Andersson with Deputy CEO Mikael Nermark in order to provide a “different kind of leadership” during tumultuous times.
In a more shocking turn of events, the Economic Crime Authority (ECO or EBM) has since conducted a surprise raid of the company’s headquarters, with chief prosecutor Thomas Langrot confirming to Expressen that “a person has been arrested”. Details remain scarce, with hints towards insider trading being the cause. As usual, computers and documents have been confiscated from the Stockholm office until they have been cleared by officials.
“The company as such is not the subject of any suspicion,” confirms Investor Relations Chief Ann Charlotte Svensson. “The company cooperates with the ECO. The event does not affect the company of the ongoing business reconstruction.”
KitGuru Says: It’s difficult to blame Starbreeze for putting all of its eggs in one basket, given that The Walking Dead is such a popular hit around the world. Still, the aftermath is certainly painful for staff. Both Overkill and PayDay 3 remain in a state of uncertainty in the aftermath, but here’s hoping for the best case scenario for staff and fans alike.