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Gaming giant Embracer Group, after recently splitting with Saber Interactive, in its latest move, is splitting into three new entities. TheLord of the Ringsowner says it will allow the new companies to focus better on their respective works. The companies include Middle-earth Enterprises & Friends, Asmodee Group, and Coffee Stain & Friends.
It may come as a surprise to many as news surrounding the company during the year 2023 and the better half of 2024 were filled with either layoffs or splitting off with studios. It also entered an agreement with Take-Two Interactive to sellBrothers in Armscreator Gearbox which the Rockstar parent believes willadd strength to the company.
Embracer Group Setting up For Making Waves in the Market, Hopefully
As for the roles, Asmodee is to focus on tabletop games, Coffee Stain & Friends on A/AA premium alongside F2P for PC, and Middle-earth Enterprises & Friends on AAA video games for both PC and consoles. All in all, the new companies collectively own over 500 IPs includingKingdom Come Deliverance,Goat Simulator,Dead Island, and more.
Industry Giants Amazon and Embracer Group Both Announce Significant Layoffs
Embracer writes in theofficial statement:
This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.
Since June 2023, the company has gone through a lot of restructuring, cutting the headcount by around 1,300 while also canceling a lot of games in the process. Embracer is struggling to stay afloat in the market after their $2 Billion investment fell through.
It seems like the gaming fans began hating the company but don’t seem to look behind the scenes. In that case, Saber Interactive founder Matthew Karchsupported the company, saying that Embracer “seems to be a company these days that everyone likes to pick on.”
The Gaming Market in Pickle Forcing Companies To Go Sustainable Ways
Now that it’s separated into three companies, appears like all will focus on making itleaner, stronger, and more self-sufficientas the restructuring was intended. Previously, when the company was on a games-killing spree, it canceled aDues Exsequel which was reportedly under development for two years.
Embracer Group Making Moves that could Impact the Borderlands Franchise, Star Wars Knights of the Old Republic Remake AND Warhammer 40K: Space Marine 2
The gaming market is in a pickle right now whether it’s a matter of in-game content or video games itself. Gaming giant Sony also canceled aSpider-Mangame titledThe Great Web. Prior to that, it killedTwisted Metalgame which, like many others, was reportedly under development.
Following the news of the split, the company’s shares jumped by a tenth as reported by Financial Times. According to Citigroup, it was “a more extreme step” than they expected. Moreover, the move does make sense given the discomfort “the market has with [its] financial leverage.”
What do you think about the company’s move? We would like to know your thoughts on this in the comments section.
Anurag Batham
Gaming Journalist
Articles Published :425
Anurag Batham is a video games correspondent at FandomWire. With over two years of experience in writing for different industries, his past works show his passion for the metaverse and his awareness of the environment. He’s always playing with ideas to turn them into captivating stories.A gaming enthusiast who can prove it when you have a round of Call of Duty (COD) with him. And it may take more than a coffee with him if you are to talk to him about Marvel. One can find a reader in him who’s always keen to perfect what he already knows and to learn everything new.
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