Reuters: Embracer Group weighing potential sale of Gearbox Entertainment

First announced two years ago, at Sony’s showcase in 2021,Star Wars: The Old Republic’s remake is seemingly being officially scrubbed from around the internet. Could the project be another casualty as part of Embracer Group’s reorganization?

In the aftermath of Embracer Group failing to close a deal with Savvy Group worth $2 billion earlier this year, the company has suffered some financial setbacks. In June, it revealed that it was instituting a restructuring program that would entail layoffs, studio closures, and upcoming projects being cancelled.

Embracer Group has quite a few studios under its label. The company is now seemingly in a bind, ranging from various acquisitions and mergers. Financial struggles could be a real issue. In fact, it wasn’t long ago now that we had word of Volition Games shutting down completely. While Embracer Group is striving to restructure its plans going forward, a new round of layoffs has just occurred for another studio under their control. The latest was Crystal Dynamics, who were forced to see several jobs get cut. 

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 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. 

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.

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

It’s recently emerged that Embracer Group is considering selling Borderlands developer Gearbox Entertainment, as the company looks to steady itself in a period of financial uncertainty following a failed $2 billion deal with Saudia Arabia’s gaming group earlier this year. However, other options for the studio’s future are being considered as well.

According to several new reports, both Gearbox Entertainment and Jagex may find themselves up for sale soon. Owners Embracer Group and the Carlyle Group, respectively, are potentially looking to offload the companies.