Payday Developer Cancels Its Dungeons & Dragons Game Project Baxter, Resulting In Layoffs

Payday developer Starbreeze announced yesterday that it has ceased development of Project Baxter, its cooperative game set in the Dungeons & Dragons universe. The cancellation will result in layoffs at the studio.

Project Baxter was first announced in December 2023 with a 2026 launch window, and was billed as an Unreal Engine 5-developed cooperative multiplayer Dungeons & Dragons game. It was also described as a live-service game, though the extent of which was never made clear. Project Baxter was slated to launch on all major platforms and would have supported cross-play.

Although we don’t know what state Project Baxter was in for Starbreeze to abandon the game, the company states that after a strategic review, its management and the board of directors determined it would be financially healthier to divert the resources allocated to Project Baxter to “accelerate the growth” of its flagship Payday franchise.

“This was a difficult but necessary decision,” said Adolf Kristjansson, CEO of Starbreeze. “Our strategy is clear: Payday is one of the most iconic IPs in gaming, with unmatched reach and potential. By focusing our investment and talent here, we can accelerate delivery, engage players with more content, and reinforce Starbreeze’s position as the clear leader in the heisting genre. This is about sharpening our focus to create the strongest long-term value for our players, our people, and our shareholders.”

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Although Starbreeze states that some of the Project Baxter development team will be reassigned to other projects (mostly Payday), it plans to let go of 44 employees and contractors in an effort to “enable Starbreeze to become cash-flow positive in 2026.”

“I want to sincerely thank the Baxter team for their passion and creativity, and express appreciation to Wizards of the Coast for their support,” says Kristjansson. 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.”

Starbreeze’s last release, Payday 3, was released in September 2023 in a troubled state and failed to hit sales expectations (here’s our review). This resulted in the departure of then-CEO Tobias Sjögren less than six months later. In December 2024, 15 percent of Starbreeze’s staff were laid off. Kristjansson became the new CEO in March of this year. 

Project Baxter joins several high-profile cancellations this year, which include Monolith Productions’ Wonder Woman, EA’s Black Panther, Square Enix’s Kingdom Hearts: Missing-Link, Xbox’s Perfect Dark and Everwild, and Avalanche’s Contraband.