Starbreeze has confirmed that sales of Overkill's The Walking Dead were below expectations, and as a result is now making a number of changes in order to reduce costs and focus on its core business.
Overkill's The Walking Dead launched for the PC in early November, and although it sold decently in China and Russia, the game failed to make much of an impression on the charts in other countries.
In light of the disappointing sales for the zombie co-op shooter, Starbreeze has revealed plans to kickstart an initiative to 'reduce costs and sharpen focus on core business – internal and external development.'
'We will not be able to recognize the license fee from 505 Games for Overkill’s The Walking Dead as revenue until after the end of the fourth quarter, while initial sales revenues from the game are lower than expected. This will have negative impact on fourth-quarter earnings, but our target of positive EBITDA for Q4 stands,' said Sebastian Ahlskog, CFO of Starbreeze Studios.
'We have initiated a review of our costs to ensure better alignment with our revenues. 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.'
Overkill's The Walking Dead was originally pencilled in for release on PlayStation 4 and Xbox One alongside the PC release, but was pushed to early 2019.