Embracer will cancel games and close more studios to save costs

Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
Embracer Group's mighty games empire will shrink a little as the company attempts to cut costs.

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Ever since its massive $2 billion business deal fell through, Embracer Group has been laying out plans to rein its massive team of studios in and reduce spending. Embracer was really counting on that $2 billion influx of cash to help fund new projects. Now the company will pare back its focus, cancelling projects and closing studios along the way.

In a recent earnings report, Embracer Group CEO Lars Wingefors gave an update to investors on the cost savings plan and confirmed more games and teams would be effectively terminated.

"We are making good progress on the restructuring program. We are tracking towards the targets, including reducing capex by at least SEK 2.9 billion and overhead costs by at least SEK 0.8 billion by FY 2024/25, as well as reaching a financial net debt below SEK 8 billion by the end of this financial year.

"Initial actions have been taken on closure and other initiatives to reduce the number of projects and studios and overhead savings initiatives have been defined in co-ordination with the Operative Groups.

"With a series of initial actions now taken, we expect further savings after the completion of a global review of the existing pipeline, which is currently ongoing. This review will guide our capital allocation to optimize return on investment.

"The purpose of the program is to operate with efficiency across the group and to reduce business risk in the short-term."

There was no update on which games and studios would be affected and Embracer is doing its best to try to ensure those who have been laid off will know about it first, unlike other layoffs where the media finds out before the developers do.

 
Dammit. I was hoping these guys would give us a Deus Ex sequel and remaster Human Revolution for the XSX/PS5. Mankind Divided leaves too much unfinished.

We are never getting another Deus Ex are we?
Easier to re-reboot the franchise than try to make a buck selling the finale of a trilogy that was started so long ago...

Both Square Enix and Embracer dropped the ball hard here for fans of the IP.
 
what major/good studios they have besides cd and eidos? I only remember warhorse and I hope they are developing kcd's sequel without problems
 
Sony should able to swoop in and get some great studios at the cheap 4a games, thq nodic, 3d Realms, gearbox , the studios they got of square Enix etc
 
what major/good studios they have besides cd and eidos? I only remember warhorse and I hope they are developing kcd's sequel without problems
Gearbox. There are some decent studios which were under former Deep Silver, like 4A Games or Volition. Though after Saint Row's flop Volition was moved to Gearbox branch and it's uncertain will they develop new games or become just a support studio.
 
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For years, we all watched Embracer spend billions scooping up studios and IP and wondered what the fuck they were doing...

...it turns out they didn't know what the fuck they were doing either.
 
Gearbox. There are some decent studios which were under former Deep Silver, like 4A Games or Volition. Though after Saint Row's flop Volition was moved to Gearbox branch and it's uncertain will they develop new games or become just a support studio.
Also wasn't thq and 3d realms the publishers of the recent RTS tempest rising? Would love that on the ps5
 
What a shitshow, but not surprising considering the whole operation seems to be more about securing IPs and talent for hire
 
Sony should able to swoop in and get some great studios at the cheap 4a games, thq nodic, 3d Realms, gearbox , the studios they got of square Enix etc
A Sony backed Deus Ex would be amazing.

Just give the devs a large budget and let them make a fantastic cyberpunk immersive sim.
 
EA has been around since the 1980s. Very few companies in this industry last that long.
Sure, but I was more referencing the fact that EA has a tendency to scoop up underdog companies, use them until their last drop or lock them in a closet to do nothing, and then throw them into a garbage bin.

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