Embracer Group has announced that it is embarking on a ‘restructuring programme’ with the aim of becoming a “leaner, stronger and more focused, self-sufficient company”. In other words, he’s about to take some pretty significant cost-cutting measures after spending the last six or so years focusing on broad studio acquisitions.
In an an open letter written on Embracer Group’s official website, CEO Lars Wingefors states that the company’s actions will include, but not be limited to, closing or selling some studios and ending or pausing some ongoing game development projects. It will also reduce spending on ‘non-development costs’ such as overhead and other operating costs.
Ultimately, Embracer Group will re-adjust its focus on internal IP, reducing its third-party disclosures in the future. As for the projects that will be cancelled, Embracer Group has stated that it will be limited to unannounced titles; all games known to the public at the time of writing will continue to be released as planned.
Obviously, this means that many talented individuals at Embracer Group could soon be let go in the coming months, although Wingefors seems reluctant to make any predictions on exactly how many at this stage. The company has made significant acquisitions over the past few years, including Limited Run Games, Middle-Earth Enterprises, Gearbox Software, and key Square Enix assets including Crystal Dynamics and Eidos-Montréal.
