Embracer Group to start shutting down studios to save on costs

[Gizmo_Duck]

Embracer Group CEO Lars Wingefors tells investors that the digital games empire will shrink some as it attempts to shrink costs and reduce spending.

In a recent earnings report, Embracer Group CEO Lars Wingefors gave an update to investors on the cost savings plan and confirmed more games and teams would be effectively terminated.

"We are making good progress on the restructuring program. We are tracking towards the targets, including reducing capex by at least SEK 2.9 billion and overhead costs by at least SEK 0.8 billion by FY 2024/25, as well as reaching a financial net debt below SEK 8 billion by the end of this financial year.

"Initial actions have been taken on closure and other initiatives to reduce the number of projects and studios and overhead savings initiatives have been defined in co-ordination with the Operative Groups.

"With a series of initial actions now taken, we expect further savings after the completion of a global review of the existing pipeline, which is currently ongoing. This review will guide our capital allocation to optimize return on investment.

"The purpose of the program is to operate with efficiency across the group and to reduce business risk in the short-term."

Embracer will cancel games and close more studios to save costs

Embracer Group CEO Lars Wingefors tells investors that the digital games empire will shrink some as it attempts to shrink costs and reduce spending.

www.tweaktown.com

 

[Neuromancer]

What games did they make?

 

[Rembrandt]

What games did they make?

They're a holding company that owns a lot of companies/devs/publishers:

List of mergers and acquisitions by Embracer Group - Wikipedia

en.wikipedia.org

 

[The Mad Titan]

Me: "I don't care who buys who as long as it isn't one of those foreign companies with no dedication to gaming and it's one of the big 3."

Sony Stan's: " You so disingenuous, you just want Microsoft to buy up everything. There is no difference in what they are doing and what MS is doing"

 

[FromStLouis]

Go get Crystal Dynamics (Perfect Dark) and Eidos Montreal (Fable) - secure the TMNT IP from Paramount and give the next TMNT game (after T L R) to the team that made GotG.

 

[gurf]

Me: "I don't care who buys who as long as it isn't one of those foreign companies with no dedication to gaming and it's one of the big 3."

Sony Stan's: " You so disingenuous, you just want Microsoft to buy up everything. There is no difference in what they are doing and what MS is doing"

This is exactly what M$ is doing. Yet due to it being your team you’re cheering it on.

This is why I don’t want large scale consolidation. Period

 

[Gizmo_Duck]

This is exactly what M$ is doing. Yet due to it being your team you’re cheering it on.

This is why I don’t want large scale consolidation. Period

This.

Microsoft also can decide to shut down studios if xbox isn’t bringing in money. What type of logic is that lol

 

[Red Shield]

They bought a shyt load of studios over the past few years...

 

[Kaydigi]

Man sell crystal dynamics to Sony, Microsoft or Nintendo. What was the point of buying all those companies just to fukked up two years later. That's some NBA 2K trade for everyone and your cap is messed up shyt.

 

[Gizmo_Duck]

Man sell crystal dynamics to Sony, Microsoft or Nintendo. What was the point of buying all those companies just to fukked up two years later. That's some NBA 2K trade for everyone and your cap is messed up shyt.

Apparently CD and Eidos are the two studios they are happy with because they got the amazon deal through them lol

 

[5n0man]

Me: "I don't care who buys who as long as it isn't one of those foreign companies with no dedication to gaming and it's one of the big 3."

Sony Stan's: " You so disingenuous, you just want Microsoft to buy up everything. There is no difference in what they are doing and what MS is doing"

How would you even argue something like this?


Restricting acquisitions to a select few companies would just give those companies way too much control over the industry.

 

[Canon]

Me: "I don't care who buys who as long as it isn't one of those foreign companies with no dedication to gaming and it's one of the big 3."

Sony Stan's: " You so disingenuous, you just want Microsoft to buy up everything. There is no difference in what they are doing and what MS is doing"

Ms better not close one studio

Not a one!

 

[winb83]

This is exactly what M$ is doing. Yet due to it being your team you’re cheering it on.

This is why I don’t want large scale consolidation. Period

As the cost of game development continues to rise consolidation is inevitable. A lot of these developers don't have the capital to make the games they want to make without a backer. A lot of these large publishers are becoming risk averse and only putting out mostly limited large franchises and trimming down the catalogs of IPs they keep active to let some rot on the shelf.

 

[Gizmo_Duck]

As the cost of game development continues to rise consolidation is inevitable. A lot of these developers don't have the capital to make the games they want to make without a backer. A lot of these large publishers are becoming risk averse and only putting out mostly limited large franchises and trimming down the catalogs of IPs they keep active to let some rot on the shelf.

Why do you think Microsoft is immune to all that?

 

[The Intergalactic Koala]

They better not touch Deep Rock Galactic