Embracer Group, the proverbial grim reaper of video game acquisitions, has wreaked havoc on the studios and intellectual property it acquired in recent years. Out of Layoffs in several companies to the closure of beloved studios like Saints Row Developer Volitionand cancellations of large, exciting projects like a new Deus Ex GameEmbracer has acquired (and closed) companies. practically nothing to show for it.
In his current financial reportEmbracer Group CEO Lars Wingefors said the company has further plans to sell some of its investments, consistent with reports border areas Developer Gearbox Software may be for sale. But he also says further “restructuring” could take place in the meantime, meaning there will likely be further layoffs within the company and its subsidiaries. This comes as the company laid off over eight percent of its workforce, or around 1,387 positions, and canceled 29 games company-wide last year.
Why? Well, Wingefors says Embracer’s “first principle is to always maximize shareholder value in every situation.” We all know that, but it’s not often that a man in a suit is willing to say the quiet part loudly and audibly.
This is the legacy of Embracer and the people on it social media are already condemning Wingefors’ comments given the current industry climate. And Embracer isn’t the only company that buys up studios and then lays off numerous employees shortly afterwards. Microsoft recently Almost 2,000 jobs were cut after it was finished Acquired by Activision Blizzard. Maybe we can challenge the assumption that acquisitions of this magnitude are a good thing for games – and we should stop doing it hyping them up with celebratory trailers.
