It looks as though Starbreeze’s cost-cutting measures and subsequent release of the Starter Edition for Overkill’s The Walking Dead was only half of the story, as Starbreeze has filed for insolvency.

In addition, Starbreeze CEO Bo Andersson Klint, who took on the role in 2013, has stepped down from the position. In a press release, Starbreeze states that the move was “based on a shortage of liquidity and deemed to be a necessary step to give [Starbreeze] the time needed to negotiate a long-term financial solution and implement changes in the organisation and operations. The financial targets for Q4 2018 and 2020 no longer applies.”

The statement continued, saying that due to the low sales of Overkill’s The Walking Dead, which includes the recent efforts to get people buying the game, the company “has reduced the short term forecasted revenue resulting in an expected shortfall of cash in January 2019.” Unlike the Telltale situaion, Starbreeze will still continue to operate (and pay its staff), but during this “reconstruction period”, no payments can be made to suppliers for services or goods made up to this point.

This all casts doubt for additional future content for Overkill’s The Walking Dead, but also the publisher’s future projects, including the still-in-development System Shock 3 with OtherSide Entertainment, and Payday 3. The company is in the red, having lost $22.2 million in 2017, and $11.3 million in Q3 of 2018, both before tax. If no investors are found for the company, then Telltale may unfortunately have some company.