Starbreeze Reduces Losses by Nearly Half in 2022, Despite Not Regaining Profitability

Starbreeze has released its financial results for the fourth quarter and full year of 2022, showcasing sales comparable to 2021, but with a significant reduction in losses. For the full year 2022: Net sales totaled SEK 127 million ($12.2 million), representing a 1.5% year-over-year increase, while losses decreased by 42% year-over-year to SEK -59.8 million ($5.74 million). In the fourth quarter of 2022: Net sales reached SEK 33.6 million ($3.22 million), marking an 8.3% year-over-year increase, and losses decreased by 15% year-over-year to SEK -16.8 million ($1.61 million). Although Starbreeze has not yet achieved profitability, the company has managed to cut its losses by nearly half compared to the previous year. The sustained popularity of the Payday franchise has likely contributed to this, with the series generating SEK 121.9 million ($11.7 million) in sales for the full year 2022, compared to SEK 119.8 million ($11.5 million) in 2021. However, Steam sales for the title declined by 14% year-over-year. Starting from January 2023, Starbreeze will receive an 80% share of Payday 2 sales on Steam, up from 75% previously, which may lead to increased revenue from the title in future financial reports. In a statement, Starbreeze CEO Tobias Sjögren acknowledged that the company is still affected by the talent shortage crisis but has expanded its workforce from 156 to 165 during the fourth quarter of 2022. According to Sjögren, 'A combination of game development projects from our proprietary and licensed IPs, our publishing activities, and the potential to expand the Payday brand beyond gaming will ensure a long-term and diversified revenue model, taking Starbreeze to the next level.' Last year, Starbreeze announced its return to third-party publishing, with its debut title being Walking Tree Games' The Tribe Must Survive. The company has also established a new UK studio, led by Cinder Cone co-founders Tancred Dyke-Wells and Lawrence Bishop, to focus on developing newly acquired IPs and third-party publishing.