STAR B

Starbreeze

Market Cap 2,280.3M

Starbreeze currently has three business areas: Starbreeze Games, Publishing and VR Tech & Operations (Virtual Reality). Starbreeze Games has been the core business since the company was founded in the late 90s. In 2012-2013, the company began to internally finance the development of its own games, which was a very successful strategy. The keys to success were Payday 2 and the acquired company Overkill Software: the company’s profits skyrocketed overnight when Payday 2 was released. Since then, the same game has generated good cash flows for more than four years. In the meantime, Starbreeze Games has been developing new games, and two potential mega-blockbusters are in the pipeline. In the company’s Publishing business area, Starbreeze finances game development by external studios and markets and distributes the games. The business area has been operating for two or three years. As for the two biggest games, Dead by Daylight was a commercial hit and RAID: World War II was a flop. But the hit has generated substantial revenues and the flop was not excessively costly. At the moment, two major titles are in development, both of which ooze quality, and both of which are sequels to already strong brands. Starbreeze also publishes a lot of VR content and games and is investing long-term in VR. It all started with Starbreeze’s investment in technical hardware, which then led to StarVR Corp, a joint venture with Acer. However, the company’s focus is actually not on hardware, but on development and investment in content for the game and film industries. The premium experience in the next few years is expected to be found in location-based VR, where a large share of the market is expected to be in the next 2-5 years. Starbreeze has invested extensively in VR tech while building a platform that has made them first-movers and pioneers in the field.

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