Embracer Group CEO Lars Wingefors tells investors that the digital games empire will shrink some as it attempts to shrink costs and reduce spending.
Hmm... why don't they look to Sony or MS to sell some of these to?
So these studios aren't profitable for embracer, but you think Sony wants to use capital to purchase unprofitable studios? Buying IP sure, but buying unprofitable studios?
It's not that they're unprofitable. It's that Embarcer burned through cash too fast to expand. Now they have to reduce the size because their earnings are below what they spend to acquire studios (and pay all those people).
"Buying IP sure, but buying unprofitable studios?" Sony has been buying a lot of small/unknown studios that many would call, "unprofitable". Heck, I remember the time some users on N4G used to mock MS for acquiring Obsidian , by calling it a "near bankrupt" studio. All it takes is to either Sony or MS to see the potential of those Embracer´s studios to warrant an acquisition.
You don't close your profitable investments because you are cash poor. That is a quicker way to go under. To the point of Sony or MS buying unprofitable Studios, it's because IP came with it they thought could be valuable.
Time to Embrace the consequences of gobbling up more studios than you can handle.
That's how imagine MS gobbling everything up along with GP.
@blackblades that’s why those companies still operate independently , they handle their own issues .. MS is just cutting the checks now
@wiz Not sure how ‘independent’ you think those companies are but you’re mistaken if you think MS gives them free rein to just do anything they want. They definitely operate under MS (or Sony’s) guidelines. Only truly independent companies like Larian have that luxury of true freedom.
@Rawfodog I’m going to assume ppl don’t know what the term operate independently means. Do yourself a favor and google it , I never said they can do what ever they want or even alluded to that .. MS doesn’t directly manage any studios under Zenimax and the same will be true with Activision Blizzard , they operate as a separate business ..
@Jin_Sakai "Time to Embrace the consequences of gobbling up more studios than you can handle." Didn´t Sony shut down PlayStation Studio PixelOpus along with it´s new unannounced AAA game in development, just a few months ago at the same time they were celebrating world breaking numbers for Playstation? I think the decisions on shut down studios are very difficult ones for everyone involved and way more complex than most pretend to comprehend, before start and make judgments. Today is Embracer, tomorrow might be MS, Sony, EA and even Nintendo. We can only hope for the best.
@Obscure_Observer As Sciurus said below. “Embracer has over 125 studios and over 15,000 employees. The company has more studios than Sony, MS and Nintendo put together, yet it never once generated enough revenue to crack the top game companies in terms of revenue” Big difference.
Embracer has over 125 studios and over 15,000 employees. The company has more studios than Sony, MS and Nintendo put together, yet it never once generated enough revenue to crack the top game companies in terms of revenue ( https://www.alltopeverythin... Company of Embracer’s size isn’t sustainable, especially when it’s out performed by much smaller companies (EA, Take-Two, Ubisoft and Bandai-Namco.
Well these companies are going indie and new names lol.
Ouch that Saudi deal really did a number on them.I just hope Destroy All Humans studio is ok.
Instead of closing studios down maybe you should try and pawn them off on other companies. I would not be surprised if Tencent starts circling around like a hungry shark.
I guess as long as there are no decent IPs tied to them no one really gives a damn. You can acquire the talents you need off the market anyway after that, without buying the whole (mostly parallel) structure.
I hope all the impacted employees land on their feet it's never good seeing shutdowns like this. Embracer group never seemed like a bad or malicious company by any means it's owned by some hardcore gamers itself but they didn't seem to understand business to busy sucking up IP which they still retain even with the closures so if anything that seems to be their motive
I think some big company stay behind Embracer, like a Microsoft buying all companys with ips than after this microsoft gonna buy embrancer and put all games in to the gamepass and close all studios
They had such a good thing going on, but turns out they were fattening themselves up. So many great IPs under them they could have utilised better than waste money on this. But of course, it will be the dev who pays and not the people who brought about this issue in the first place :)
This company bought studios and IP's to make their portfolio look impressive and then tried to get a middle eastern investor to invest 2 billion dollars in them and the deal fell through. Sounds like they bit off more than they can chew.
told ya so
Dang I hope we can still get a Legacy of Kain somehow.
Embracer Group sux ass and should die !
The Epic Game Store has two free titles they are giving away this week.
Got them both to play with my kids