Starbreeze, the gaming studio behind the co-op shooter series Payday, has cancelled its upcoming Dungeons and Dragons (D&D) project. The decision has resulted in a wave of layoffs, and according to a statement by Starbreeze, was done in order to allocate more time and resources towards the Payday franchise.

Starbreeze’s D&D game, which was codenamed Project Baxter, was announced during 2023. Starbreeze described Baxter as “[carrying] the signature Starbreeze game cornerstones of co-operative multiplayer, lifetime commitment through a Games as a Service-model, community engagement and a larger than life experience.” The game was set to be released sometime in 2026, but Starbreeze has revealed that Project Baxter is officially cancelled. 

The decision to discontinue Baxter’s development resulted in Starbreeze losing approximately SEK 255 million, or 27 million USD, in Q3 of 2025. According to Starbreeze, the loss is “fully related to previously recognized development expenses and has no effect on Starbreeze’s cash position.” Baxter’s discontinuation also resulted in a wave of company layoffs. According to a report by The Game Developer, around 44 contractors and full-time employees working at Starbreeze have been laid-off. However, due to union negotiations, Starbreeze was unable to provide the specific number of employees affected. 

Those who were working on Baxter but are not impacted by layoffs will be re-deployed to other Starbreeze projects. Starbreeze said the redeployment “strengthens ongoing delivery, reduces reliance on external recruitment, and ensures expertise is concentrated where it creates the most impact.” The series with “the most impact” is none other than Payday, with Starbreeze confirming that many of the re-deployed employees will begin working on said series.

Starbreeze’s decision to redeploy their employees to the Payday series is a part of the company’s larger Payday-centric growth plan. The decision to refocus the company around the Payday franchise is due to its popularity and financial success, with them citing that Payday has had over 50 million global players and earned around SEK 4 billion, or 425 million USD, in revenue. Starbeeze also said that “with increased focus and resources, Starbreeze will accelerate its roadmap, delivering more frequent updates, new content drops, and continuous live-engagement.” 

In his statement surrounding Baxter’s cancellation and the company’s reorientation towards Payday, Starbreeze’s CEO Adolf Kristjansson said “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. By concentrating our efforts on Payday we give Starbreeze and all our employees the best chance to succeed.”

In regards to the future of Starbreeze, the company announced that they will be devoting all of their resources to the currently available Payday titles, as well as heist-based spin-offs and narrative games set in the same universe. Starbreeze is also offering its services to other companies through a work-for-hire operating model.