Embracer Group's Major Overhaul: From Project Reductions to Studio Closures

In response to the challenges posed by the current market environment, Embracer Group announces significant changes in its structure and development strategy. Recently, the company decided to undergo restructuring, leading to a reduction in the number of game projects and optimization of the number of studios and employees.

By the end of 2023, as part of these changes, 29 unannounced game projects were canceled, affecting the total number of developments: from 153 project teams working on game creation in the first quarter, this figure dropped to 124 by the third quarter. This decision is part of a strategy to reduce expenses and increase the efficiency of the holding's operations.

The restructuring also significantly impacted the structure of the affiliated studios: the number of studios decreased from 139 to 132, and the number of externally financed partners was reduced from 59 to 50. Unfortunately, these measures resulted in about 1,400 employees (8% of the total workforce) being forced to seek new employment.

Among the most significant studio closures were Volition, known for its last project – the unsuccessful reboot of Saints Row, and Free Radical Design, the developer behind TimeSplitters. Additionally, there was information about the potential sale of Gearbox, as well as layoffs at Gearbox Publishing, Crystal Dynamics, Zen Studios, and Eidos Montreal.

Embracer Group confirms that all the measures taken are part of a pre-planned restructuring strategy aimed at optimizing the holding's operations in the current economic climate. The company aims for more efficient resource utilization, which, in their view, will strengthen market positions and ensure a sustainable future.