Embracer Group, after cancelling numerous games and laying off staff, has restructured into three separate entities. 4A Games, known for the Metro series, will stay under the Embracer umbrella, remaining within the ‘Middle-earth Enterprises & Friends’ division focused on AAA games. This decision comes after Saber Interactive’s recent separation from Embracer, leaving 4A Games as a valuable asset in the reorganized structure.
Embracer Group, a major player in the video game industry, has implemented significant cost-cutting measures to improve profitability. This has resulted in layoffs, studio closures, and game cancellations, impacting thousands of employees and projects. This analysis dives into the financial figures and visual representations of these reductions, revealing the scale of the cuts.
Embracer Group, the Swedish gaming conglomerate, saw a decline in net sales for the first quarter of its 2024 fiscal year, largely due to a decrease in PC and console gaming revenue. However, the company reported improved profitability in tabletop and mobile gaming segments. Embracer also revealed plans to split into three publicly listed entities, with the first spinoff expected by the end of the year.
A new report reveals that Embracer Group-owned developer Fishlabs was working on a new Red Faction game, but the project was canceled before layoffs hit the studio. The game, described as similar to Red Faction: Guerilla, was met with internal challenges and ultimately deemed unfeasible. The cancellation, alongside other factors, led to significant layoffs at Fishlabs and further emphasizes the ongoing struggles within the video game industry.
Pieces Interactive, the studio behind the 2024 remake of Alone in the Dark, has been shut down by Embracer Group. The decision comes after the game failed to meet sales expectations, despite a positive reception from some players. This closure adds to a string of recent shutdowns and layoffs at Embracer Group, marking a tumultuous period for the gaming company.
Fans of Little Nightmares will have to wait a bit longer for the third installment, as the game has been delayed to 2025. The development team announced the delay on X (formerly Twitter), saying that they needed more time to ensure the quality of the game. They also promised that more details would be coming later this summer. Little Nightmares 3 was announced at Gamescom’s Opening Night Live in 2023 with a trailer that teased the general story. While Six and Mono, the two previous playable characters, don’t appear in the video and it seems to feature more unique environments, it still feels very much like a Little Nightmares game, complete with grotesque-looking adults and even larger (literally) threats to get around. As with Little Nightmares 2, the third entry will feature two playable characters — called Low and Alone — who will work together to solve puzzles and escape from looming threats.
Embracer CEO Lars Wingefors has acknowledged criticism surrounding recent layoffs, studio closures, and game cancellations, taking personal responsibility for the company’s actions. Despite ongoing industry volatility, Wingefors emphasized the company’s unwavering mission and belief in its long-term plans. Embracer has announced a split into three separate entities to focus on distinct areas of business. While acknowledging the challenges, Wingefors expressed confidence in the support of company leaders and emphasized the need for adaptation in the evolving gaming landscape.
Embracer Group has split into three separate companies: Asmodee Corp, Coffee Stain & Friends, and Middle-Earth Enterprises & Friends. Each will focus on a different core strategy, with Asmodee specializing in tabletop games, Coffee Stain handling indie and mid-budget PC and console games, and Middle-Earth Enterprises overseeing AAA developers like Crystal Dynamic and Eidos Montreal. The move is intended to foster better focus and long-term growth.
Embracer Group has announced plans to split itself into three distinct gaming companies: Asmodee, Coffee Stain and Friends, and Middle-earth Enterprises and Friends. The move is intended to unlock the potential of each team and provide them with independent leadership. Each entity will operate as a separate publicly listed company on the Nasdaq Stockholm.
