Embracer Group, an organization of gaming studios including THQ Nordic, PLAION, and Coffee Stain, recently announced a major restructuring that may result in layoffs and a major shakeup to the industry.
Embracer Group, a prominent player in the global video game development industry, has recently announced a restructuring program that may result in game development cuts and layoffs. In recent years, Embracer has pursued an aggressive expansion strategy marked by significant acquisitions and investments in game development.
The restructuring program, set to run until March 2024, is divided into several phases, with the initial phase already underway. The company currently employs close to 17,000 people, which is expected to decrease by the end of the year due to the restructuring, while the exact forecast is yet to be determined.
This process will also involve closing or divesting some studios and pausing some ongoing game development projects. Embracer plans to reduce spending on non-development costs and third-party publishing, focusing more on internal IP and increasing external funding for large-budget games.
The company is looking forward to a solid year of releases, including Remnant 2, Warhammer 40,000 Space Marine 2, Payday 3, and Homeworld 3, among others. With the recent financial success of Dead Island 2, the move may come as a surprise to some.
We’ll be following along with this story in our news section.