Starbreeze has revealed in a press release that the initial sales revenue from Overkill’s The Walking Dead, which is currently out on PC, has failed to meet expectations. As a result, the company will be reviewing its costs and focusing on its core business.
“We will not be able to recognize the license fee from 505 Games for Overkill’s The Walking Dead (console versions) as revenue until after the end of the fourth quarter, while initial sales revenues from the game are lower than expected,” wrote Starbreeze. “This will have negative impact on fourth-quarter earnings, but our target of positive EBITDA (earnings before interest, tax, depreciation and amortization) for Q4 stands.”
Starbreeze attributes Overkill’s The Walking Dead‘s low revenue to the title selling more in “low-price countries” such as China and Russia. The company is now having to review its operations. However, the “disappointing” performance isn’t holding the team back from working at full capacity to improve the game, and adding new content.
“We have initiated a review of our costs to ensure better alignment with our revenues,” said Chief Financial Officer Sebastian Ahlskog. “We must focus on our core business and ensure delivery of the company’s important games.”
Overkill’s The Walking Dead will release on the PlayStation 4 and Xbox One on February 6, 2019 in North America, and February 8, 2019 worldwide.