Embracer to Close Studios, Cancel Games, and Lay Off Staff After $2 Billion Deal Falls Through
Embracer Group has announced plans to close studios, cancel games, and lay staff off just weeks after a $2 billion contract deal fell through.
In an open letter to the company’s 17,000 staff, CEO Lars Wingefors said Embracer will decrease spending across the board, reduce third-party publishing, and “put greater focus on internal IP and increase external funding of large-budget games”.
“This morning we announced a restructuring program across the Embracer Group that will make us a leaner, stronger and a more focused, self-sufficient company,” Wingefors said.
Embracer is known as a massive games holding company that's gobbled up developers, publishers, and properties over the last decade.
Its empire includes companies such as THQ Nordic, Plaion, Saber Interactive, Gearbox, Middle-earth Enterprises, Dark Horse Media, Coffee Stain, Crystal Dynamics, Eidos-Montreal, Asmodee, Amplifier, Deep Silver, and many others.
Embracer games set to release in the next year include Remnant 2, Warhammer 40,000 Space Marine 2, Payday 3, Hot Wheels Unleashed 2: Turbocharged, Arizona Sunshine 2, Alone in the Dark, Homeworld 3, and more.
In December, Amazon Games signed a deal with Embracer-owned Crystal Dynamics to support the development of and publish the next mainline Tomb Raider game being made in Unreal Engine 5.
Embracer recently released Dead Island 2, which Wingefors called “one of our greatest successes so far”. Last year's Saints Row fared less well, however.
Embracer is also behind the troubled Star Wars: Knights of the Old Republic remake, which is currently in the hands of Aspyr.
Wingefors hit the headlines last month when a mystery $2 billion deal fell through unexpectedly at the last minute.
According to Embracer, it had a "verbal
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