“Overkill’s The Walking Dead” did not live up to publisher Starbreeze Studios’ expectations, according to a news update from the company which states it is “reviewing costs and focusing on core business,” released Friday.
The board of directors mandated that management of the company should review a program to “reduce costs and sharpen focus on core business” since the initial sales of the game, which released on Nov. 6, have been lower than anticipated. The share of sales of “Overkill’s The Walking Dead” have been higher than expected in “low-price countries, such as China and Russia.”
The $10 million license fee from 505 Games to Starbreeze won’t be recognized for Q4 2018, contributing further to the disappointing earnings for the quarter. Instead, the fee will be recognized after this quarter.
Starbreeze Chairman Michael Hjorth commented on the disappointing sales of the game.
“This is disappointing, of course, but we have a base to work with in regards to the number of games sold,” Hjorth said. “We have a pulse of concurrent players, which is essential to future performance within the framework of our Games as a Service concept. The team is working at full capacity to deliver improvements to the game and new content, and Season 2 will be starting soon.”
The company’s program is anticipated to reduce costs significantly for 2019.
Sebastian Ahlskog, who announced last month that he will leave his CFO role at Starbreeze, commented on the efforts of the company to save costs and generate revenue— an effort he will oversee until a new CFO takes over. Mika Reini was interim CFO, but has left that role since the announcement of Ahlskog’s departure.
“We have initiated a review of our costs to ensure better alignment with our revenues,” Ahlskog said. “We are designing a program towards that end, naturally while keeping a careful eye on revenue development. We must focus on our core business and ensure delivery of the company’s important games.”
Season 2 of “Overkill’s The Walking Dead” will bring new characters and a new villain to take on, according to the official website of the game.