Starbreeze cancels Project Baxter; 44 layoffs and loss of $27.2 million

Starbreeze Entertainment has canceled Project Baxter, its games-as-a-service title for Dungeons & Dragons, after a strategic review. The decision, although presented as a focus on the future, resulted in a significant financial loss and the human cost of layoffs.

The immediate cancellation of Project Baxter resulted in a non-monetary devaluation of approximately SEK 255 million ($27.2 million), which will be accounted for in Q3 2025. In addition to the financial impact, around 44 full-time and contracted employees will be laid off. The company could not provide an exact number of affected workers due to union negotiations, raising questions about the transparency of the layoff process.

Starbreeze justified the move by concluding that "resources are better applied to accelerate the growth of [its] main franchise Payday." The company will internally reassign part of the development team from Baxter to other Starbreeze projects, focusing talent on the Payday franchise. Starbreeze's CEO, Adolf Kristjansson, defended the decision as necessary for the company's future:

"This was a tough but necessary decision. By focusing our investment and talent [on the Payday franchise], we can accelerate delivery, engage players with more content, and strengthen Starbreeze's position as a clear leader in the heisting genre."

The CEO emphasized that the focus is on creating a "stronger long-term value" for players, employees, and shareholders. Starbreeze is directing its efforts towards the genre where it is already established, seeking an undeniable leadership position. Kristjansson expressed gratitude, stating that "although we have made the decision not to continue with this project, we are proud of what was achieved in Baxter, and these contributions will be carried forward to Payday and the future of Starbreeze."

The cancellation ends expectations for a games-as-a-service title based on Dungeons & Dragons, leaving the project as an unrecoverable cost of $27.2 million. Starbreeze has stated that no further comments will be made during this process.

Starbreeze Entertainment canceled Project Baxter, resulting in a $27.2 million loss and the layoff of approximately 44 workers in Q3 2025. The strategic move will accelerate growth of the Payday franchise, aiming to strengthen Starbreeze's position in the heisting genre. The company recognizes the sacrifice of employees and the cost of $27.2 million as a necessary price to focus its resources on its main franchise.