BREAKING NEWS: Starbreeze Abandons Dungeons & Dragons Project, Citing Strategic Shift to Core ‘PAYDAY’ Franchise and Announcing 44 Layoffs

Stockholm, Sweden – October 2, 2025 – In a major restructuring announcement reverberating through the gaming industry, Starbreeze Studios, the developer behind the globally recognized PAYDAY franchise, has confirmed the cancellation of its cooperative multiplayer Dungeons & Dragons game, codenamed “Project Baxter.” The strategic decision, made by the Board of Directors and management, is coupled with plans to reduce the company’s headcount by approximately 44 full-time employees and contractors, a move Starbreeze executives deem a “difficult but necessary” step to secure the firm’s long-term financial stability and growth.

The Strategic Pivot: Doubling Down on the Heisting Genre

The cancellation of the highly anticipated Dungeons & Dragons title, which was announced in 2023 and slated for a 2026 release as a co-operative, Games-as-a-Service model, marks a definitive pivot back to Starbreeze’s flagship intellectual property. The company’s official statement underscores a clear intention to redirect all available resources, including development talent and capital investment, to accelerate the growth of the PAYDAY series, particularly focusing on revitalizing the live-service aspects of PAYDAY 3 and expanding the entire franchise.

The Core Reason: Reinforcing a Flagship IP

CEO Adolf Kristjansson emphasized the company’s strategic clarity in a press release addressed to investors and the public. The focus is unequivocally on the heisting genre, a niche Starbreeze arguably pioneered and seeks to dominate.

• Unmatched IP Potential: Kristjansson stated, “Our strategy is clear: PAYDAY is one of the most iconic IPs in gaming, with unmatched reach and potential.”
• Accelerated Content Delivery: The reallocation of the development team is intended to “accelerate delivery, engage players with more content, and reinforce Starbreeze’s position as the clear leader in the heisting genre.”
• Long-Term Value Creation: The move is positioned as “sharpening our focus to create the strongest long-term value for our players, our people, and our shareholders.”

The decision comes amidst the backdrop of a challenging period for the studio, particularly following the highly scrutinized launch and subsequent performance of PAYDAY 3. By concentrating efforts on its core, profitable franchise, Starbreeze aims to become cash-flow positive by 2026, a critical target for any publicly traded game developer navigating the volatile live-service market.

Financial Fallout and Workforce Impact

The immediate financial consequence of the cancellation is a significant non-cash impairment charge. Starbreeze will write off approximately SEK 255 million (roughly USD $27.2 million) in capitalized development costs related to Project Baxter during the third quarter of 2025. This substantial financial write-off highlights the scale of the investment already committed to the unreleased title, underscoring the severity of the strategic realignment.

The human cost of this pivot is equally significant, with an estimated 44 roles—comprising both full-time employees and external contractors—being made redundant. While some members of the Project Baxter team will be redeployed to bolster the PAYDAY development units, many are facing a transition out of the company.

• Layoff Figure: Approximately 44 employees and contractors are affected by the headcount reduction.
• Redeployment: Remaining members of the “Baxter team” will be reassigned, primarily to the PAYDAY projects, which is set to grow its core team to around 50 people by the end of 2025.
• Support for Affected Staff: Starbreeze has pledged to provide “active support for affected employees to transition to new roles across the industry.”

Kristjansson acknowledged the team’s contributions: “I want to sincerely thank the Baxter team for their passion and creativity… Though we have made the decision to not continue forward with this project, we are proud of what was achieved in Baxter, and those contributions will carry forward into PAYDAY and the future of Starbreeze.”

The Future of PAYDAY and Live-Service Strategy

The new strategy outlines an intensified focus on the PAYDAY franchise, which boasts a historical player base of over 50 million worldwide and a lifetime gross revenue of nearly SEK 4 billion. The path forward includes:

• PAYDAY 3 as a Scalable Platform: The goal is to evolve PAYDAY 3 into a “scalable live-engagement platform” through ongoing technology upgrades, refinement of the player experience, and an accelerated content roadmap.
• Heisting Genre Expansion: Starbreeze plans to create “new games and experiences that broaden the heisting genre,” potentially including spin-offs, narrative-driven projects, and expansion onto new platforms.
• Work-for-Hire Operations: The company will continue to utilize a work-for-hire operating model to supplement revenue and diversify its business risk.

This major organizational shift by Starbreeze Studios is a powerful indication of the pressures facing mid-sized studios in the competitive AAA and live-service sector. The Dungeons & Dragons IP, while immensely popular following the success of titles like Baldur’s Gate 3, was evidently deemed a non-core risk the company could no longer afford to carry, necessitating a sharp, survival-focused consolidation around its most valuable asset—the PAYDAY brand.