![]() ![]() Since 2020, Embracer Group has acquired or founded well over 50 game studios and offices. That’s a much better use of resources than some of the other projects that some of our teams have been working on.”Įmbracer Group’s two big acquisitions are not alone the publisher also owns Saints Row publisher Deep Silver, and has spent the last few years consolidating the video game industry by buying up studios. “And that’s obviously something that we’re going to do be doing. “We know we need to be exploiting Lord of the Rings in a very significant fashion, and turn that into one of the biggest gaming franchises in the world,” Karch said. Karch, in the webcast, added a caveat, saying that the games canceled have “for the most part” not been announced.įollowing the announcement, Crystal Dynamics put out a statement on Twitter to confirm that neither its upcoming Tomb Raider game nor Perfect Dark will be impacted by the restructuring. The implication of the news release is that any announced game is “safe” from the restructuring plan - or, at least, will not be canceled. Early this year, Embracer announced that it has five mystery Lord of the Rings games in development by external partners. That year, Embracer Group bought the licensing rights to The Lord of the Rings and The Hobbit by buying rights holder Middle-earth Enterprises. Microsoft, Sony acquisitions are just the start of massive video game industry consolidationĮmbracer Group owns the rights to both Tomb Raider and Lord of the Rings it acquired Tomb Raider when it purchased Eidos, Crystal Dynamics, and Square Enix Montreal from Square Enix in 2022. Karch said the studios to be closed are “underperforming,” or not creating games “up to our standard.” Embracer Group said that the impacted projects have “not yet been announced” and have “low projected returns” on investment. “Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this,” Wingefors said in the letter. ![]() Polygon has reached out to the publisher for more information. Neither Wingefors nor Embracer Group have detailed when specific closures or layoffs will happen. Matthew Karch, the now former Saber Interactive CEO and current interim chief operating officer, said, however, that the first phase of cost-saving will be “immediate and noticeable.” This means that an unknown number of Embracer Group’s 17,000 staff will be laid off as part of the process. The nature of these phases is unclear, and under the general guise of cost savings and consolidation to reduce debt below 10 billion Swedish Krona, which equals roughly $930 million. He said the restructure is split into three phases and is expected to continue until March 2024. The news comes weeks after it reported that a deal worth $2 billion in income to the company had unexpectedly fallen through.ĬEO Lars Wingefors announced the restructure in an open letter alongside an investor webcast and a news release on Tuesday morning. Swedish gaming conglomerate Embracer Group, which has been rapidly gobbling up game studios and popular IP over the past few years, will undergo a major restructuring that will require the publisher to close multiple studios and cancel several games. ![]()
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