After the expansion policy of the past few years, the Embracer Group has to bake smaller rolls. Problems with financing have already led to project cancellations, studio closures and layoffs. According to CEO Lars Wingefors, there will be more measures of this kind.
After a gigantic expansion phase in which the Embracer Group took over numerous studios and entire publishers, the turnaround followed this year.
Because of a lack of financial injection headed the Swedish media company a restructuringwhich resulted in project cancellations, studio closures and layoffs.
The previous measures will not stop: Lars Wingefors, Chief Executive Officer of the Embracer Group, has now admitted that there will ultimately be more to come.
“We are making decisions to restructure or downsize some teams. And in some cases there will be closures,” said Wingefors. At the same time he hopes according to a report by Stephen Totilo (Axios). on investments from outside.
Regarding a possible sale of studios, the CEO explained rather vaguely: “There is a strong, dynamic market with many, many active players – both financial sponsors and large industry players. But it’s easier to do proper processes for, I would say, higher value assets than for smaller assets.”
From major investor to renovation project
The Embracer Group is made up of several independent business units that have been acquired in recent years. These include THQ Nordic (2011), Coffee Stain (2018), Plaion (formerly Koch Media/Deep Silver, 2018), Amplifier Game Invest (2019) and Saber Interactive as well as DECA Games – both acquired in 2020.
Gearbox Entertainment, the developer behind “Borderlands”, is also one of the company’s acquisitions and has been owned by Embracer since 2021, which could soon change again. The subdivided Volition was restructured and slimmed down this year closedbut was hardly able to convince with “Saints Row” (Metascore 61), released in 2022.
The Embracer Group’s portfolio also includes Easybrain (2021), Dark Horse Comics (2021) and Asmodee (2021), to name just a few more examples. The provides a detailed overview of the company structure corresponding Wikipedia entry.
While the ongoing restructuring measures are likely to be immediate failed deal with Savvy Games and are intended to lead to a profitable company, they are also the result of unnatural growth at an obviously unsustainable pace.
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It remains unclear how Wingefors would like to raise the financial resources to support the company’s existing teams and projects. According to reports, the collapsed deal with Savvy Games was worth two billion dollars.
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