Embracer exec warns of "more cancellations, potentially some more closures" to come

rockpapershotgun.com:

Embracer Group's restructuring process is still in its "early stages", and as such, we can expect "more cancellations, potentially some more closures" and some possible "management buyouts", according to Phil Rogers, CEO of the operating group that includes Crystal Dynamics and other Western studios previously owned by Square Enix.

All that comes from a GamesIndustry.biz interview in which Rogers discussed Embracer's attempts to make savings and reduce their net debt, following a series of big acquisitions over several years and the reported collapse of a $2 billion deal with Savvy Games.

Announced in June, the restructuring process has seen Embracer shut down Saints Row developer Volition and lay off around 900 people across its operations, including staff at Mythforce developer Beamdog and Star Trek Online developer Cryptic. In the process Embracer have reduced their net debt to $1.4 billion, and are hoping to bring it down to $757 million by the end of their next financial quarter in March 2024. The company are rumoured to be thinking about closing Timesplitters developer Free Radical and selling off Borderlands developer Gearbox.

In the interview, Rogers didn't specify who or which projects might be on the chopping block. "It's always a tricky question," he told the site. "We report to the quarter, and we're mindful that the operative groups are making changes. Some of that makes the news, and some of it doesn't. We don't comment on that, but we will report on it as we get to those quarterly measurement dates, so the next time will be in February.

"Our priorities are... very much keeping a focus on working together, keeping eyes on the goal at a project level," Rogers went on. "We have announced that we