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Embracer Group, the proverbial grim reaper of video game acquisitions, has been wreaking havoc on the studios and IP it has acquired in the past few years. From layoffs across several companies to shutting down of beloved studios like Saints Row developer Volition, and cancellations of big, exciting projects like a new Deus Ex game, Embracer has been buying up (and shutting down) companies with practically nothing to show for it.
In its latest fiscal report, Embracer Group CEO Lars Wingefors said the company has more plans in the works to sell off some of its investments, which would line up with reports that Borderlands developer Gearbox Software may be up for sale. But he also says that further “restructuring” may happen in the meantime, meaning more layoffs within the company and its subsidiaries are likely coming. This follows the company laying off over eight percent of its workforce in the past year, which is around 1,387 jobs, and canceling 29 games across its company.
Why? Well, Wingefors says Embracer’s “overruling principle is to always maximize shareholder value in any given situation.” This is a thing we all know, but it’s not often you get a suit willing to say the quiet part out loud and on the record.
This is Embracer’s legacy, and people on social media are already blasting Wingefors’ comment given the current industry climate. And Embracer’s not the only company that’s been acquiring studios and laying off scores of employees soon after. Microsoft recently cut nearly 2,000 people’s jobs after it finalized its acquisition of Activision Blizzard. Perhaps we can lay to rest any notion that acquisitions on this scale are a good thing for games—and we should stop hyping them up with celebratory trailers.
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