 O3 Games was founded by Lars Johansson , who also worked at a demoscene company . Its first game was The Outforce , a real @-@ time strategy space game that was released in 2000 and subsequently became a success for the company . O3 needed to expand so that it could continue video game development . After Sorcery 's cancellation , Starbreeze ran into financial difficulties . Unable to support itself financially , Starbreeze needed to merge with another developer to continue in business . The two companies discussed a merger in Uppsala and merged shortly afterwards , retaining the name Starbreeze Studios . 
