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Swedish publisher and distributor Starbreeze has signed an agreement with Otherside Entertainment to publish System Shock 3 on PC and other platforms. Starbreeze will pour $12m into the title, and it says it will be able to recoup 120 per cent of its full investment including marketing costs.

Under the agreement, Otherside Entertainment will retain 100 per cent of the intellectual property relating to System Shock 3, which is currently in the early concept stages of development under the direction of industry legend Warren Spector as well as a team whose collective experience stretches across the original System Shock, System Shock 2, Deus Ex and Thief: The Dark Project. Meanwhile, Starbreeze’s share of revenues will become 50 per cent after its investment is recouped.

"System Shock is one of those iconic franchises in the history of games that still gets my blood going and Mr. Spector is one of the founding fathers of the modern action RPG" said Bo Andersson-Klint, Starbreeze CEO.

"We’re greatly looking forward to bringing System Shock 3 to players world wide in our collaboration with Otherside Entertainment and Warren Spector’s team. I’ll be first in line to play".

OtherSide’s CEO Paul Neurath added: We are thrilled to be partnering with Starbreeze for System Shock 3. They truly get games and gamers, and have been able to translate that understanding into a robust publishing business, and build thriving gaming communities around their franchises.”

System Shock 3 is just one of many high-profile announcements made by the publisher in recent months. In February, Starbreeze agreed to publish Double Fine’s Psychonauts 2, investing $8m in the game to bring it to PC and console via digital distribution, and in the same month signed a distribution deal with 505 Games to bring asymmetric horror title Dead by Daylight to retail later this year.

The studio also acquired Indian studio Dhruva Interactive in December last year, which it expects to be finalised by the end of Q1 2017, and in its end of year report, Starbreeze also announced it was due to begin mass production of its StarVR headset later this year.