Last week, there were reports that the PlayStation 4 and Xbox One versions of Overkill's The Walking Dead were canceled. At the time, 505 Games addressed the reports saying that the console releases were only postponed, not canceled. It promised to share new information on the port "as soon as possible."
Today, Walking Dead owner Skybound Entertainment has confirmed that that console versions of Overkill's The Walking Dead are indeed canceled. In addition, support for the existing PC version is coming to an end. Skybound Entertainment has terminated its contract for the game entirely.
"As of today, we have terminated our contract with Starbreeze Studios and will discontinue all efforts on Overkill's The Walking Dead. Our creators and their stories are the core of Skybound, and since 2014 we have worked hard to expand the world of The Walking Dead into an exceptional Co-op Action FPS. We did our best to work with Starbreeze and resolve many issues that we saw with the game, but ultimately Overkill's The Walking Dead did not meet our standards nor is it the quality that we were promised. We are exceedingly sorry to our fans and share their disappointment in the game. We remain dedicated to providing our fans with the most premium quality content we can offer, and will continue to look for alternative video game options for the IP," Skybound Entertainment told IGN.
Overkill's The Walking Dead has been a shambling horror for everyone involved for some time now. The PC version launched in November, achieving mixed reviews on Steam and only making $3.7 million for Starbreeze in terms of net sales. Following the poor sales, Starbreeze attempted to cut costs and perform a reconstruction to save itself from insolvency, and the studio was raided by Swedish authorities a few days later for "gross insider crimes," with one person being arrested. Given the general situation around Overkill's The Walking Dead and Starbreeze, it makes sense that Skybound Entertainment is looking to cut ties.
Starbreeze is slated to publish Psychonauts 2 from Double Fine Entertainment, though the latter studio is prepared to find another publisher. Further work on Payday 2 and the upcoming Payday 3 are in question though.