Titan if ever there was one, Embracer Group then goes through long months painful phasewhich led to a rather unexpected outcome: a division into three companies.
This is not a dismantling to deal with its colossal debts, but more than one reorganization – more or less. In recent weeks, Embracer sold Gearbox Software and Saber Interactive, reducing its liabilities to half a billion dollars. Clearly, that’s still quite a sum!
The board of directors therefore approved the decision (via this press release) which will see Embracer cease its existence, but whose philosophy – and shares – will be reinvested in the following three entities:
- Middle-Earth Enterprises & Friends: pillar of the trio, which specializes in “triple A development and publishing” with, as standard bearers, licenses Lord of the Rings And tomb Raider.
- Asmodeus: specialized in board games, this antenna is also active with “a large network of studios” but above all licenses with great potential.
- Coffee Stain & Friends: this third head of the hydra will have “a double specialization in A/AA indie games as well as free-to-play for PC, consoles and mobiles.”
Concretely, what to expect from the players?
As has been the case since last year, Embracer will have to go through a new internal restructuring which should not not give much light on current projects. We will most likely have to wait several months to get more clarity… but it could be full of good things.
Despite the sale of big names to replenish its accounts, Embracer Group still has licenses with great potential. As a reminder, an MMO located in the universe of Lord of the Rings is in development at Amazon Gamesand will be published by Embracer Group Middle-Earth Enterprises & Friends. We are also waiting for news on the remake of Knights of the Old Republicwidely anticipated by fans of the RPG. Lars Wingefors recently teased its updated developmentbut without really giving details.
The CEO of Embracer, in fact, gave an interview this week to GamesIndustry.biz in which he admits “deserved”lots of criticism.” After long turbulences which notably saw the dismissal of 1,400 employeesWingefors nevertheless claims to be able to redress the situation: “I still believe I have the trust of many, if not all, of the major entrepreneurs and CEOs who have joined the group. When we were at the height of 2020, 2021, we made all these decisions about acquiring, creating organically or investing… I believed strongly in it. The result, because it takes a number of years to make games, is different and painful, and we have to adapt to it.”
We therefore hope that this restructuring into three distinct entities will allow Embracer and its teams to find his glory from a few years ago, and to offer us titles that rock!
