It’s been barely a month since the reboot of horror classic Alone in the Dark arrived, but it looks like developers Pieces Interactive are now making a number of layoffs in the wake of its release.
09.04.2024 - 11:09 / eurogamer.net / Lars Wingefors / Matthew Karch
Saber Interactive CEO Matthew Karch has defended Embracer's acquisition strategy, following its split from the Swedish conglomerate.
Last month Embracer sold its Saber assets and the companies separated. In a new interview with IGN, Karch said it was his suggestion that Saber leave Embracer, which he described as «bittersweet».
Embracer is undergoing a restructuring programme after a period of mass acquisition — Karch compares the company to Pac-man «gobbling up everything on the screen» — and has laid off eight percent of staff. Yet despite garnering a negative reputation in the industry as a result, Karch remains on «very good terms» with Embracer CEO Lars Wingefors.
Newscast: Why are there so many games industry layoffs? Newscast: Why are there so many video game industry layoffs?Watch on YouTube«I was walking around GDC getting congratulated by people and having people telling me that Embracer is the evil empire,» said Karch. «Embracer is as small-town and homegrown of a large organisation as you're ever going to see. It's not a company which wants to spit out a thousand Lord of the Rings games regardless of whether or not those Lord of the Rings games are going to hurt the licence. That's not the way Embracer operates. It's not the way Lars operates. He loves IP. He loves games. He loves game developers. He got to start in comics. God knows how long ago, and he's just a good human being, and he cares about his people.»
Karch claims the «market lost patience», which has resulted in the huge amount of layoffs at Embracer. «I don't think the layoffs that Embracer incurred to any larger or degree than they incurred anywhere else, but Embracer, because it acquired so quickly, has gotten a reputation because it's had to lay off people quickly,» said Karch.
He continued: «You could state that a lot of the jobs that were lost were jobs that wouldn't have otherwise been created...Some of the studios that we're taking with us would never have been able to grow the way they've grown. No way. We've created a lot of jobs, and they may have, especially in this market downturn, been out of business in any event because capital has just dried up, not just at Embracer, but everywhere. There was a long period of time when nobody was investing at all.
»...I think you can blame Lars for maybe being a little bit naive that this gravy train would just continue. But I think now you could admire them for making tough decisions and doing whatever they can to preserve as much of what they've built as they can in a fair and equitable way...I think some people saw those acquisitions and were annoyed by Embracer when they were acquiring. I remember a lot of negative comments about them gobbling everything up. And so
It’s been barely a month since the reboot of horror classic Alone in the Dark arrived, but it looks like developers Pieces Interactive are now making a number of layoffs in the wake of its release.
While the long-standing curse of gaming adaptations has been broken for quite a while, the Fallout TV adaptation (just renewed for a second season) stands out from many others not only because of its sheer quality but also because it dared to progress the story further, taking place after the latest games instead of merely adapting existing storylines.
Following the collapse of a «verbal agreement» reportedly worth $2 billion with the Saudi-funded Savvy Games, Embracer Group entered into a brutal nine-month restructuring programme that resulted in the loss of some 1,400 employees and the cancellation of dozens of unannounced games. CEO Lars Wingefors, whose actions were recently defended by Saber Interactive CEO Matthew Karch («give Lars a break»), in a new interview, says: «As a leader and an owner, sometimes you need to take the blame.»
Embracer Group CEO Lars Wingefors is taking the brunt of responsibility when it comes to the company's most recent round of layoffs, studio closures, and game cancelations.
The CEO of troubled Swedish games firm Embracer Group, Lars Wingefors, has admitted that he is deserving of criticism for the current state of his company.
Embracer Group CEO Lars Wingefors has suggested he must shoulder much of the blame for a “long list” of mistakes that led to a “painful” restructuring of the company.
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Swedish game and media holding company Embracer Group has announced its plans to split into three separate entities.
Embracer Group, the embattled gaming conglomerate that owns the rights to 'The Lord of the Rings' franchise, has announced that it is splitting into three different companies. The group, which went through significant restructuring this year and sold off major game studios like Saber Interactive and Gearbox to reduce debt, will separate into Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. The three games and entertainment companies will be standalone, publicly listed entities, Embracer said, with the split “enabling each entity to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders.”
Famed mass-layoff-manufacturing corporation Embracer Group are dividing into three companies, which will be listed separately on Sweden’s stock exchange. Those companies are: Asmodee Group, which comprises Embracer’s tabletop games biz; Coffee Stain & Friends, an evolution of the existing Coffee Stain publisher, who will pursue "a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile"; and Middle-earth Enterprises & Friends, “a creative powerhouse in AAA game development and publishing for PC and console, as well as the stewards of The Lord of the Rings and Tomb Raider intellectual properties, among many others”.
This morning, the Embracer Group announced a major transformation of the company, which will be split into three separate publicly listed companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. The existing Embracer Group listing on Nasdaq Stockholm will be renamed to Middle-earth Enterprises & Friends, and shares of Asmodee Group and Coffee Stain & Friends will be distributed as dividends to shareholders of Embracer Group. The listing and distribution of Asmodee Group shares is expected to occur within 12 months, and Coffee Stain & Friends shares during calendar year 2025.
Swedish games firm Embracer Group is splitting up into three different companies.