Embracer Group is restructuring into three separate entities to better manage its diverse portfolio, following a period of financial challenges and every good fan of tomb Raider and The Witcher You should know about this.
The reorganization of Embracer Group It has been an extensive process that seeks to improve efficiency and reduce the company’s net debt. This restructuring involves several key aspects:
- Cost Reduction and Efficiency Increase: Embracer Group has implemented measures to increase cash conversion and reduce capital expenditures (capex), aiming to achieve net debt below SEK 10 billion by the end of fiscal year 2023/24. Additionally, non-development expenses such as overhead and other operating costs have decreased (Embracer Group).
- Division and Sale of Studies: Part of the restructuring includes the sale or closure of some studios. This has led to the group’s Saber Interactive split, although Embracer will retain publishing rights for all current and future games in the Metro franchise, which will continue to be managed by Embracer’s PLAION subsidiary (Gematsu).
- Impact on Personnel and Projects: The restructuring has resulted in the layoffs of 1,387 people, representing approximately 8% of the group’s global workforce. Additionally, some game development projects have been canceled or paused, reducing the number of titles in development from 224 at the end of 2022 to 179 (GamesIndustry.biz).
- Focus on Internal Intellectual Properties: Going forward, Embracer will focus more on proprietary IPs and established studios, which they hope will lead to greater predictability and profitability (GamesIndustry.biz).
- Commitment to the Transmedia Strategy: Despite the challenges, Embracer remains committed to its transmedia strategy, which aims to leverage its scale, the quality of its portfolio and its capabilities to deliver substantial value across the group (Embracer Group).
This restructured approach is expected to position Embracer Group more strongly for the future, optimizing its operations and better aligning its resources with areas of greatest potential for growth and profitability.
Just to remember that:
The last game released by Embracer Group was “The Lord of the Rings: Gollum”In collaboration with Amazon Games. A massively online game (MMO) based on “The Lord of the Rings”. This game is an open-world adventure set in JRR Tolkien’s Middle-earth, exploring the beloved stories of “The Hobbit” and “The Lord of the Rings” literary trilogy. The development is led by the studio Orange County by Amazon Games and will be published worldwide for PC and consoles (right now it’s on sale at Steam)
