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Embracer Group

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Updated Jan 30, 2024 at 04:47PM EST by Zach.

Added Jan 30, 2024 at 01:17PM EST by Philipp.

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About

Embracer Group is a Swedish video game and holding company based in Karlstad. In the early 2020s, the company became known for acquiring a large number of video game studios globally. In late 2023 and early 2024, following a failed $2 billion investment deal, the company moved on to shut down a large number of studios in an attempt to restructure, leading to mass layoffs and game cancelations, which was followed by viral discussions on imageboards and social media as Embracer garnered controversy online.

History

Formation and Acquisitions

In 2011, Embracer Group, originally operating as Nordic Games Licensing AB, was established as a holding company within Nordic Games Holding. In August 2016, the company changed its name to THQ Nordic AB after acquiring the THQ trademark. In 2019, the company rebranded as Embracer Group.

In the 2010s, Embracer Group acquired several notable video game studios and publishing companies, including JoWood Entertainment, Deep Silver and its subsidiaries and Coffee Stain Studios.

In the early 2020s, Embracer Group made a large number of acquisitions of video game companies and intellectual properties, including acquisitions of Gearbox Software (Borderlands series), Asmodee, Crystal Dynamics, Eidos, Square Enix Montreal, Dark Horse Comics, New World Interactive, Tomb Raider, Deus Ex, Thief, Lord of the Rings.


Location / Country Platforms Team size Example of titles ● Our 18 publishers S 5 RAVENS COURT THQNORDIC n PC/ Console 50-100 HandyGames PC/ Console/ Mobile 25-50 BIOMUTANT WRECKFEST COEMEENCHE AIRHEAD DEEP SILVER PC/ Console 25-50 SCA SAINTS ROW MILESTONE PC/ Console 10-25 HOT WHEE UNLEASHED METRO MXGP WRIDE EXODUS PC/ Console 25-50 VERTIGOGAMES ROAD 96 n VR 10-25 PRIME MATTER AFTER THE FALL r PC/ Console 25-50 koch films All publishers manages both external and owned IP's Publishing titles ranges from mobile to AAA Movies 50-100 Stain ● 2 PC/ Console / Mobile 10-25 SUNSHINE SING ARIZONA SYSTEN SHOCK TITANE VALHEIM EVIL DEAD Kingdom Come MAFIA INC SATISFACTORY PARASITE DEED ROCH 2022 SABER PC/ Console 10-25 DAKAR aspyr REALMS DECA PC/ Console/ Mobile 25-50 PC/ Console >10 MORKREDD KINes STUBBS ZOMBIE Rebel Without P LIGHTMATTER Live Ops 25-50 WD GOD Seriale pungons CrazyLabs ATHINKING APE Pel I Mobile (Hyper Mobile Casual/ (Casual) Casual) 25-50 >10 gearbox Opustishing m PC/ Console 100+ HECKERE A Party HOMEWORLD 3 DORM GODFALL PERFECT Easybrain WORLD ENTERTAINMENT Mobile (Puzzle / Logic) 50-100 789 MMO / PC / Console 100+ REMNANT NEVERWINTER ORCHILICH +700 employees works closely with our internal and external developers with production, marketing, sales, distribution to ensure to have the best possible access to the global market upon release and beyond

In June 2022, the holding company received a $1 billion investment from the Savvy Gaming Group, a Saudi investment company.

Failed Investment Deal and Restructuring

On May 24th, 2023, Axios[1] reported that Embracer Group failed to achieve a $2 billion partnership deal, with Savvy Gaming Group later revealed to have been the partner in the collapsed deal.[2] On June 13th, 2023, the company announced a restructuring to reduce costs, hinting at layoffs and studio closures.[3]


755KiB, 1159x878, madaboutdamoney.png View Same Google ImgOps SauceNAO Embracer drops 40% after $2B deal falls through literally overnight [59/3/44] Anonymous Wed 31 May 2023 21:38:16 No.639059261 View Original Report Quoted By: >>639059482 >>639059678 >>639060010 >>639060121 >>639062137 >>639065173 >>639070757 >>639070827 >>639070926 >>639071060 >>639071915 >>639072920 https://www.forbes.com/sites/paultas si/2023/05/24/embracer-group-stock- drops-40-after-2-billion-mystery-deal-self-destructs/?sh=2a9b7166c540 Speculate away you trashy mfers, it's all you lot are good for. Derek Strickland @DeekeTweak Embracer Group is restructuring to reduce costs. This will lead to layoffs, studio closures, and project cancellations. Actions will cover, but are not limited to: • Matthew Karch appointed interim Chief Operating Officer, and Phil Rogers appointed interim Chief Strategy Officer, to co-lead the program planning and implementation . Reduction of general overhead, corporate, publishing and SG&A costs • The closing of studios and termination of projects, that have not yet been announced and with low projected returns • Creation of a more comprehensive, centralized process for game investment and progress review, while maintaining creative freedom • Consolidation of companies and businesses, including review of operative group structures • Reduction of investments into external development with greater focus on internal development based on owned or controlled IP • Increased external funding of internally developed, large-budget games • Renewed focus on the Group's main business areas . Implementing a centralized and standardized, more data-driven and precise approach to game forecasting 2:07 AM Jun 13, 2023 148K Views . Actions will cover, but are not limited to: • Matthew Karch appointed interim Chief Operating Officer, and Phil Rogers appointed interim Chief Strategy Officer, to co-lead the program planning and implementation • Reduction of general overhead, corporate, publishing and SG&A costs • The closing of studios and termination of projects, that have not yet been announced and with low projected returns • Creation of a more comprehensive, centralized process for game investment and progress review, while maintaining creative freedom • Consolidation of companies and businesses, including review of operative group structures • Reduction of investments into external development with greater focus on internal development based on owned or controlled IP • Increased external funding of internally developed, large-budget games • Renewed focus on the Group's main business areas : • Implementing a centralized and standardized, more data-driven and precise approach to game forecasting

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.

The announcement was followed by Embracer subsidiaries shutting down, laying off employees and canceling projects in the second half of 2023 and early 2024. Notably, on August 31st, 2023, Embracer shut down Volition Games,[4] the developer known for Saints Row and Red Faction series, sparking a controversy.

On September 11th, 2023, it was reported that Embracer was considering selling Gearbox Software, the developer it acquired in 2021 for $1.4 billion.[5] On November 1st, 2023, Embracer shut down Onoma, formerly Square Enix Montreal.[6]


161 KiB, 500x340, 1671528120725671.png View Same Google ImgOps SauceNAO JUST IN: Volition is officially dead. [168 / 34 / 92] Murdered in cold blood by Embracer. Anonymous Thu 31 Aug 2023 15:46:14 No.649133275 View Original Report Quoted By: >>649133386 >>649133552 >>649133571 >>649133578 >>649135942 >>649136305 >>649138352 >>649139252 >>649139376 >>649140271 >>649140826 >>649140829 >>649141476 >>649145440 >>649145478 >>649145685 >>649145765 >>649146535 >>649147447 >>649148163 >>649148330 >>649148475 >>649148567 >>649148816 >>649149336 >>649150289 >>649150507 >>649150648 >>649151497 >>649151858 >>649151920 >>649152420 >>649153097 >>649153141 >>649158168 >>649158380 >>649159357 >>649160442 What we've lost forevermore: Red Faction series, Descent series, Saints Row series, Summoner series. We've lost all of this after the single fiasco of Saint Row's nu-wokeboot (literally a single largest mistake Volition ever did, in their entire 30 years-long history of existence and portfolio). Press F to pay respects, /v/nons. It's all ogre. F--- you, Embracer. Shinobi602 @shinobi602 Embracer is considering selling Gearbox Software and has received interest from third parties, according to Reuters. Embracer acquired Gearbox for $1.4B back in 2021. Via: marketscreener.com/quote/stock/EM... EMBRACER* gearbox GROUP 8:47 AM - Sep 11, 2023 285K Views ... Jason Schreier @jasonschreier NEWS: Embracer has shut down Onoma, formerly Square Enix Montreal, which announced its new name just 3 weeks ago. Also: - Some Onoma staff will move to Eidos Montreal - Eidos canceled an unannounced game - Eidos working with Xbox on games like Fable Scoop: SWITCH Embracer Group Shuts Down Montreal Video Game Studio From bloomberg.com 2:35 PM Nov 1, 2022 :

More layoffs and project cancelations followed in early 2024. On January 29th, video game industry insider Jason Schreier reported that Embracer had canceled a Deus Ex video game that was two years in development.[7]

Online Reactions

The repeated reports about layoffs, cancelations and studio shutdowns by Embracer became a viral topic of discussions on 4chan's /v/ imageboard and social media. For example, a 4chan[8] thread about Embracer laying off 900 employees and shutting down 15 games created on /v/ on November 20th, 2023, garnered over 320 posts (shown below, left).

The news about Embracer canceling an upcoming Deus Ex game sparked a major controversy online, with multiple threads about the shutdown being created on 4chan's /v/ and multiple posts critical of Embracer going viral on X / Twitter. For example, on January 29th, 2024, X[9] user @JakeBaldino wrote, "I wanna stuff Embracer in a locker for what they've done to working developers and a bunch of legendary game franchises," with the post gaining over 450 reposts and 4,200 likes in one day (shown below, right).


Swedish gaming giant Embracer confirms laying off of 900 employees, shut down 15 games K L GADTON24 GRTVE 265KiB, 679x1366, Swedish gaming giant Embracer confirms laying off of 900 employees shut down 15 games.png View Same Google ImgOps Sauce NAO Swedish gaming giant Embracer [325/48/163] confirms laying off of 900 employees, shut down 15 games Anonymous Mon 20 Nov 2023 04:36:51 No.658074692 View Original Report Quoted By: >>658075150 >>658075305 >>658075430 >>658075445 >>658075453 >>658075526 >>658076461 >>658078409 >>658078505 >>658078598 >>658078602 >>658078623 >>658078660 >>658078982 >>658079367 >>658079854 >>658079924 >>658080114 >>658080216 >>658080330 >>658080982 >>658081152 >>658081814 >>658082112 >>658082398 >>658082489 >>658083696 >>658083872 >>658083992 >>658084218 >>658084252 >>658084514 >>658085428 >>658085485 >>658086330 >>658086486 >>658086525 >>658088671 >>658091413 >>658091482 >>658094752 >>658095431 >>658095639 >>658097603 >>658099390 >>658099578 >Saint's Row studio Volition has had to close down completely, while Tomb Raider developers Crystal Dynamics have been forced to lay off 10% of their workforce too. >There are also rumours that Free Radical Design have all been fired and the new Timesplitters has been shut down by Embracer. >This while Dead Island 2 made a profit after being in development hell for several years, and Payday 3 is already making a profit despite a troubled launch. Jake Baldino @JakeBaldino I wanna stuff Embracer in a locker for what they've done to working developers and a bunch of legendary game franchises. Absolutely reckless business moves are leading to massive damage to video games, with the full scope of the damage not yet realized. Will be in history books. IGN @IGN - 23h Embracer Group has reportedly canceled a new Deus Ex game and laid off some staff at Eidos Montreal. bit.ly/47SWduu 3:30 PM. Jan 29, 2024 162.8K Views : •

Search Interest

External References

[1] Axios – $2 billion partnership deal falls through for Embracer Group

[2] Axios – Scoop: Saudi-funded Savvy Games was the mystery partner in collapsed $2B Embracer deal

[3] Embracer – OPEN LETTER BY EMBRACER GROUP CEO ON RESTRUCTURING PROGRAM

[4] X – @shinobi602

[5] MarketScreener – Sweden's Embracer weighs options for Borderlands maker Gearbox Entertainment

[6] X – @jasonschreier

[7] X – @jasonschreier

[8] arch.b4k.co – /v/ Thread #658074692

[9] X – @JakeBaldino

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Quiet_boi
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Quiet_boi

FUCK Embracer for ruining Saints Row, FUCK Embracer for killing Timesplitters (again), FUCK Embracer for rushing everything published by 3D Realms and FUCK Embracer for not doing anything with Duke Nukem, Deus Ex, Borderlands, Legacy of Kain and not bringing Tomb Raider back to basics.
That's all I gotta say about this mistake of a company.

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