Embracer Group

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About

Embracer Group is a Swedish video game and holding company based in Karlstad. In the early 2020s, the company became known for acquiring a large number of video game studios globally. In late 2023 and early 2024, following a failed $2 billion investment deal, the company moved on to shut down a large number of studios in an attempt to restructure, leading to mass layoffs and game cancelations, which was followed by viral discussions on imageboards and social media as Embracer garnered controversy online.

History

Formation and Acquisitions

In 2011, Embracer Group, originally operating as Nordic Games Licensing AB, was established as a holding company within Nordic Games Holding. In August 2016, the company changed its name to THQ Nordic AB after acquiring the THQ trademark. In 2019, the company rebranded as Embracer Group.

In the 2010s, Embracer Group acquired several notable video game studios and publishing companies, including JoWood Entertainment, Deep Silver and its subsidiaries and Coffee Stain Studios.

In the early 2020s, Embracer Group made a large number of acquisitions of video game companies and intellectual properties, including acquisitions of Gearbox Software (Borderlands series), Asmodee, Crystal Dynamics, Eidos, Square Enix Montreal, Dark Horse Comics, New World Interactive, Tomb Raider, Deus Ex, Thief, Lord of the Rings.

In June 2022, the holding company received a $1 billion investment from the Savvy Gaming Group, a Saudi investment company.

Failed Investment Deal and Restructuring

On May 24th, 2023, Axios^[1] reported that Embracer Group failed to achieve a $2 billion partnership deal, with Savvy Gaming Group later revealed to have been the partner in the collapsed deal.^[2] On June 13th, 2023, the company announced a restructuring to reduce costs, hinting at layoffs and studio closures.^[3]

Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this.

The announcement was followed by Embracer subsidiaries shutting down, laying off employees and canceling projects in the second half of 2023 and early 2024. Notably, on August 31st, 2023, Embracer shut down Volition Games,^[4] the developer known for Saints Row and Red Faction series, sparking a controversy.

On September 11th, 2023, it was reported that Embracer was considering selling Gearbox Software, the developer it acquired in 2021 for $1.4 billion.^[5] On November 1st, 2023, Embracer shut down Onoma, formerly Square Enix Montreal.^[6]

More layoffs and project cancelations followed in early 2024. On January 29th, video game industry insider Jason Schreier reported that Embracer had canceled a Deus Ex video game that was two years in development.^[7]

Online Reactions

The repeated reports about layoffs, cancelations and studio shutdowns by Embracer became a viral topic of discussions on 4chan's /v/ imageboard and social media. For example, a 4chan^[8] thread about Embracer laying off 900 employees and shutting down 15 games created on /v/ on November 20th, 2023, garnered over 320 posts (shown below, left).

The news about Embracer canceling an upcoming Deus Ex game sparked a major controversy online, with multiple threads about the shutdown being created on 4chan's /v/ and multiple posts critical of Embracer going viral on X / Twitter. For example, on January 29th, 2024, X^[9] user @JakeBaldino wrote, "I wanna stuff Embracer in a locker for what they've done to working developers and a bunch of legendary game franchises," with the post gaining over 450 reposts and 4,200 likes in one day (shown below, right).