The director of Like a Dragon developer Ryu Ga Gotoku Studio says he’s surprised at the initial sales pattern for the latest game in the series, Like a Dragon: Infinite Wealth.
29.02.2024 - 20:33 / videogameschronicle.com / Randy Pitchford / Strauss Zelnick / Chris Scullion
Gearbox could be “closer than ever” to being sold off by its parent company Embracer Group, according to a new report.
Sources have reportedly told Kotaku that Gearbox CEO Randy Pitchford held a town hall meeting with staff this week, and told them that a decision had been made regarding the studio’s future, with more information to be shared in March.
According to the report, Pitchford has been telling staff for months that Gearbox’s three options were to stay with Embracer, get sold to another company or buy itself out and become independent.
Kotaku claims that the decision has been made to sell Gearbox to another company, and that a deal is being finalised.
Refusing to confirm or deny the report, Pitchford told Kotaku: “I’m delighted that what we might be up to is interesting enough to people that you want to make a story about us for your readers.”
He added: “As always, we will be thrilled to share whenever we have projects to announce or news to share as we work hard towards our mission to entertain the world.”
Reuters first reported back in September thatEmbracer was considering selling off Gearbox, with sources claiming that third parties had expressed interest in buying it.
Later that month, Take-Two CEO Strauss Zelnick refused to be drawn on whether it would be interested in acquiring Gearbox, given its long-term publishing deal with Gearbox for the Borderlands franchise and other titles.
“We’ve had a long-term relationship with Gearbox of which we’re very proud,” Zelnick said at the time. “They’re a wonderful company, they’ve delivered for us – not just Borderlands, but also Tiny Tina’s Wonderlands and other titles – and I’ve no doubt they’ll continue to be successful in the future.
“We’re thrilled that we have a long-term publishing relationship on these titles. That publishing relationship exists without regard to the ultimate owner of Gearbox. But with regard to our potential interest, we don’t tend to speculate on potential transactions.”
Embracer has been carrying out a widespread money-saving operation, announcing in June 2023 that it was implementing a restructuring plan which would involve the closure of studios and the cancellation of projects.
Earlier today it was reported thatEmbracer is set to sell Saber Interactive in a deal worth up to $500 million.
The director of Like a Dragon developer Ryu Ga Gotoku Studio says he’s surprised at the initial sales pattern for the latest game in the series, Like a Dragon: Infinite Wealth.
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Borderlands maker Gearbox Entertainment is on the verge of joining Saber Interactive in being bought out of the sinking ship that is the Embracer Group, a new Kotaku report claims. It's stated that CEO Randy Pitchford shared the news with employees during a town hall meeting earlier this week, with more information coming in March. The site «understands that the decision was made to sell, and a deal is in the late stages of being finalized».
It's looking increasingly likely that Gearbox Entertainment is going to be sold by Embracer. In a town hall with staff earlier this week, CEO and co-founder Randy Pitchford reportedly told staff that a decision had been made regarding the studio's future, with more details to be shared in March.
A new rumor has emerged that Embracer is close to selling Gearbox Software.
Saber Interactive is reportedly splitting from the Embracer Group and going private in a $500 million deal, but Gearbox Entertainment allegedly isn’t too far behind. After Bloomberg’s Jason Schreier hinted at the same, Kotaku reported that the developer is also set to be sold, with the deal in the “late stages” of finalization.
Embracer Group gobbled up a lot of studios during its 2020-era spending spree, but perhaps the biggest acquisitions were Saber Interactive (World War Z, many, many ports) and Gearbox Software (Borderlands). It’s clear Embracer had big plans for Saber and Gearbox, as both were spun into entire company divisions with other smaller studios reporting to them, but those plans have changed – Embracer’s fortunes took a turn when a $2 billion investment from Saudi Arabia fell through and the company has been desperately cutting costs since. Apparently, this means two of their crown jewels have to go.
Following reports last year that Embracer Group was considering selling Borderlands studio Gearbox as part of its ongoing «comprehensive restructuring programme», it's now being claimed a sale to a third party is in the «late stages» of being finalised.
Gearbox Entertainment was one of the companies Embracer purchased during its massive buying spree that was followed by widespread layoffs and studio closures. As reported by Kotaku, the Borderlands maker is poised to be sold out, and more information will be shared next month.
Skylanders and Crash Bandicoot developer Toys for Bob has announced plans to go independent.
Gearbox may be the next to escape Embracer Group as the massive company continues to hemorrhage staff and studios as part of a restructuring effort sparked by a $2 billion deal that fell through last year.