Embracer closes Volition, layoffs reported at Gearbox Publishing

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Embracer Group is a video game company which owns over 70 studios around the world. Things haven’t been looking good for its studios lately, as they have been suffering from layoffs and closures.

The Embracer Group has been struggling with financial issues in recent months, having failed to close an undisclosed deal worth $2 billion earlier in the year, in the wake of which the company announced that it would be shuttering studios, laying off employees, and cancelling unannounced games as part of a widespread restructuring program.

Tomb Raider developer Crystal Dynamics has confirmed ten employees have lost their jobs as part of an «internal restructuring» programme, following multiple accounts from employees that the studio had been hit with lay offs today.

Embracer has made a new round of layoffs, this time at Mythforce developer Beamdog less than 18 months after its acquisition.

Embracer Group has reportedly laid off more than 25 employees from Beamdog, according to former employees via LinkedIn, as spotted by GameDeveloper. Beamdog, the studio behind Baldur’s Gate Enhanced Edition, Neverwinter Nights Enhanced Edition, and Mythforce was acquired by Embracer’s Aspyr Media subsidiary in April 2022. 

Unity has closed two of its offices and canceled a town hall after receiving a death threat, as reported by Bloomberg. This comes days after a controversial announcement that the company would require payment for every first-time game installation made using the engine.

Borderlands developer Gearbox is reportedly up for sale by parent company Embracer Group. As per Reuters, the Swedish conglomerate is looking to restructure following a $2 billion (about Rs. 16,586 crore) deal with Saudi Arabia government-funded Savvy Games Group that fell through, earlier this year. The fallout resulted in the former cutting down on spending, in addition to closing down studios and laying off its employees. Having been acquired merely two-and-a-half years ago, Gearbox is now the latest victim, with some alleged third-party publishers expressing interest in acquiring the developer. No names were mentioned, though they were described as “international gaming groups.”

Reports have emerged that Embracer Group are exploring the sale of Gearbox, as the once omnivorous publisher holding company continues to undergo a large-scale restructuring program after a $2 billion investment deal fell through earlier this year.

Embracer is reportedly considering the sale of Borderlands developer Gearbox Entertainment just over two years after it  purchased the company for $1.38 billion.

Rainbow Studios is apparently the latest studio in the firing line of Embracer's restructuring efforts.

Gearbox Entertainment, the developer of the Borderlands franchise, is reportedly being put up for sale by parent company Embracer Group.