Starbreeze Axes D&D Game Project Baxter, Cuts Staff for Payday Push

Starbreeze has halted development on Project Baxter, its planned cooperative Dungeons & Dragons title, implementing significant layoffs within the development team and announcing a strategic refocus on its core Payday franchise.

Originally unveiled in December 2023, Project Baxter was described as an Unreal Engine 5 D&D experience that would embody Starbreeze's core principles: cooperative multiplayer, a long-term Games-as-a-Service model, active community engagement, and an expansive, immersive world.

The project targeted a 2026 launch across all major platforms with crossplay functionality. However, updates became infrequent, with only a single in-engine image shared via social media in September 2024.

As recently as November of last year, Starbreeze stated it was still hiring for Project Baxter, with development proceeding "at full speed." The studio reported holding weekly internal playtests and engaging in active discussions with potential industry partners regarding the game's development and launch. At that time, Starbreeze employed 191 people, predominantly at its headquarters in Stockholm, Sweden.

The cancellation of Project Baxter has resulted in a SEK 255 million (approximately $27.2 million) write-down of development costs for the Swedish company.

CEO Adolf Kristjansson described the move as a "difficult but necessary decision," without citing specific developmental challenges that led to the project's termination.

"Our strategy is unequivocal: Payday stands as one of gaming's most iconic IPs, possessing unparalleled reach and potential," Kristjansson stated. "By concentrating our investments and talent here, we can accelerate delivery, provide players with more content, and solidify Starbreeze's leadership in the heisting genre. This sharpened focus is designed to generate the strongest long-term value for our players, our team, and our shareholders."

A portion of the Baxter team will be reassigned to other Starbreeze projects, primarily within the Payday universe, but approximately 44 full-time employees and contractors will be laid off.

"We are doubling down on what our players love – and what we excel at – owning the heisting genre," Kristjansson elaborated. "Payday is more than a game; it's a genre we pioneered and continue to lead. By reallocating talent and capital, we can innovate heisting gameplay more rapidly while simultaneously building a foundation for the genre's future expansion."

Starbreeze revealed that the Payday franchise has attracted over 50 million players globally and generated nearly SEK 4 billion (around $427 million) in lifetime gross revenue.

"With heightened focus and resources, Starbreeze will accelerate its roadmap, delivering more frequent updates, new content releases, and sustained live engagement," the company affirmed. "Discontinuing Baxter, coupled with an intensified focus on the Payday franchise, will position Starbreeze to achieve cash-flow positivity by 2026."

Kristjansson added, "I extend my sincere gratitude to the Baxter team for their passion and creativity, and I thank Wizards of the Coast for their support. While we have chosen not to proceed with this project, we are proud of the work accomplished on Baxter, and those contributions will influence future developments in Payday and at Starbreeze. By consolidating our efforts on Payday, we provide Starbreeze and all our employees with the optimal path to success."

Looking ahead, Starbreeze faces a future where the 12-year-old Payday 2 maintains a significantly larger player base on Steam than Payday 3. Nevertheless, the developer asserts that Payday 3 "is being developed into a scalable live-engagement platform designed to captivate millions of players worldwide." The Payday 3 team is expected to expand to roughly 50 members by year's end and continue growing in response to increased player engagement.

Furthermore, Starbreeze confirmed it has new heist-themed games in development, including spinoffs and narrative-driven projects, alongside plans to expand the Payday IP to new platforms. The company is also offering its development services on a work-for-hire basis.