Sales seem to be infected 😬
Overkill’s The Walking Dead is a four-player co-op shooter that launched three weeks ago and has failed to make much of an impact even during this frenzy of Black Friday and Cyber Monday. It has been noted that the game has a very low concurrent player count and because of this Starbreeze have said the team are now cutting costs and refocusing on its core business after Overkill’s The Walking Dead failed to meet expectations.
In a press release, Starbreeze said it will now review the cost of operations and trigger a program to reduce costs and “sharpen” focus on core business. Starbreeze also noted that they won’t get a $10m licence fee from publisher 505 Games for the console version of The Walking Dead until after the end of the current financial quarter.
“We will not be able to recognise the licence 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,” outgoing Starbreeze CFO Sebastian Ahlskog said.
The sales revenue is lower than expected because, according to Starbreeze, the share of sales in low-price countries such as China and Russia is significantly higher than expected. So, the game is doing okay in China and Russia, but has flopped elsewhere.
However, Starbreeze said it’s sticking with the game.
“This is disappointing, of course, but we have a base to work with in regards to the number of games sold,” Starbreeze chairman Michael 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.”