news business Embracer Slows Down and FTC Blocks Microsoft as Rockstar Co-Founder Returns… Business news of the week
There was slightly weaker economic news this week and that was to be expected. We’ve just emerged from the tunnel of conferences and announcements, the release of the financial statements is ending and with the exception of Final Fantasy XVI, the main titles of the first half of the year are out. However, we have news on the side of the Activision-Blizzard acquisition, bad news from Embracer Group and the return of Rockstar’s co-founder to the business.
Summary
- Hug: The ogre announces the end of the break
- FTC temporarily blocks acquisition of Activision and Blizzard
- Dan Houser is back with new projects
- Briefly in the business news of the week
- Our other business articles of the week
Hug: The ogre announces the end of the break
Much has been said about Microsoft and Sony’s acquisitions over the last few years, but let’s not forget it Embracer Groupwhich launched an extensive acquisition offensive in 2018. owner of Plaion, Gearbox, Dark Horse, Asmodee, Middle-Earth Enterprises, Eidos Montréal, Crystal Dynamics or additionally Saber Interactivehad the group under their control up to that point 138 studios and 17,000 employees distributed in 40 countries. Growth that has significantly increased sales 3.2 billion last fiscal year, which left Embracer heavily in debt. As of March 31, 2023, there were a 1.34 billion hole largely due to investment
The goal is reduce debt to 860 by the end of the fiscal year is underway and will unfortunately undergo a major restructuring. CEO Lars Wingefors and CFO Johan Ekstrom said in a statement several projects have been cancelled, mostly unannounced, that studios are gradually being closed and that projects are being realigned around those with the greatest potential. The news appears to be brutal and the CEO has urged all managers to act with compassion, respect and integrity. Most of the previously announced titles continue to evolve, Tomb Raider included. Apparently, the question of the Star Wars Knights of the Old Republic remake doesn’t arise right now.
As previously mentioned, these announcements come after unsuccessful negotiations with an important, still unknown partner have ended. Simultaneously, Square Enix defector Phil Rogers will become chief strategy officer and Saber Interactive boss Matthew Krach will become the group’s director of operations. add to it Cost reduction in all areasthe introduction of new processes, the increase in external funding or even the choice of centralized management, and we get extensive changes that are purely for the purpose of limiting debt.
FTC temporarily blocks acquisition of Activision and Blizzard
New twist in this soap opera that has been running for 18 months. After the CMA’s rejection and the European Union’s approval, the appeal process against the same CMA was initiated with the FTC on the other side of the Atlantic. If you follow the weekly business review and industry news regularly, you know this The FTC had given Microsoft an appointment with the administrative court. Even before the judge’s discussion this summer, US regulators began to fear that Microsoft would validate the acquisition of Activision-Blizzard-King regardless of the CMA’s blockade. Microsoft can afford it, but will have to leave the UK if necessary. The FTC therefore applied to the US federal court for an injunction as well as an injunction. Blocking the takeover. The regulator obtained this order while the court is considering the request for an injunction.
Microsoft and Activision will not complete or complete the proposed transaction or a substantially similar transaction until 11:59 p.m. Pacific time on the fifth business day after the court’s decision on the FTC’s request for an injunction.
As the issue moves to the federal level, Microsoft seems quite confident on the matter. Meta had the upper hand in a similar situation a few months ago, and Brad Smith, vice president of the Redmond-based company, believes this complaint will only hasten the landmark decision. The hearings should begin next June 22ndIn the meantime, Microsoft has to wait in parallel with the appeals process at the CMA. According to recent statements by Microsoft’s legal counsel The company could call off the acquisition if the injunction is upheld, because it would be excessively long and costly with no guarantee of success. Finally, remember that the agreement signed with Activision is valid until July 18. After this date, the two parties can re-sign a contract with the same terms or write a new one. If no agreement is reached, Microsoft will pay Activision-Blizzard $3 billion in compensation.
Dan Houser is back with new projects
Historical figure of Rockstar Games, which he co-founded with his brot her Sam and left in the fall of 2018, Dan Houser is back
Absurd Ventures builds narratives, creates characters and writes stories for a variety of genres, regardless of medium, and produces live action and animation, video games and other interactive content; Screenplay books, graphic novels and podcasts.
An official website was opened and a funny promotional video was shared there, but it’s currently pretty empty and cryptic. There’s a photo with the caption “Would you like to be an intimacy coordinator?”, another that says robots are depressed, and one Quote from Jean Jacques Rousseau on the subject of freedom:The man was born free and is in chains everywhere“Suffice it to say we’ll be waiting for more concrete announcements to see exactly what type of content Dan Houser and his staff will be producing.”
Briefly in the business news of the week
- Microsoft and People Can Fly (Gears of War, Bulletstorm, Outriders) have announced the development of one new Triple A called Project Maverick Based on a license from Microsoft. A budget of $50 million was reportedly allocated for development.
- Dead Cells continues its journey and will be adapted into an anime next year. ADN etc bobby pills are behind this project that seems to delight the fans.
- According to Blizzard, who has not yet given any concrete sales figures, Diablo IV would have generated $666 million in 5 days.
- The Legend of Zelda: Tears of the Kingdom continues to dominate the French physical retail market by value for the week of May 29th – June 4th. It predates Street Fighter 6, Mario Kart 8 Deluxe, Hogwarts Legacy: Hogwarts Legacy (PS4) and The Legend of Zelda: Breath of the Wild (Switch).
- The Legend of Zelda: Tears of the Kingdom is out 1.5 million physical copies in Japan from May 28th. Of course, the title landed at number one in the charts.
- Gabe Amatangelo, who joined CD Projekt in 2020 to helm the Cyberpunk 2077 – Phantom Liberty expansion, told Jason Schreier that he would also lead the development of the sequel.
Our other business articles of the week
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