Embracer wasn’t the only group to rule them all after a failed $2 billion deal

The Embracer Group acquisitions may finally be complete. This week, the Swedish video game and media company, which has made countless headlines for buying everything from intellectual property rights to The Lord of the Rings To the studios at the back tomb RaiderAnd ex godAnd Borderlandsannounced that it would be a “restructuring” with the aim of becoming “a leaner, stronger, more focused and self-sufficient company”.

This open letter Group CEO Lars Wingefors said the restructuring would include closing or selling studios, halting or suspending game development, and reducing overall spending. Wingefors also wants the company to focus more on its internal IP and bring in more external funding for big budget games.

“Today’s proposed program will transform us from our current large investment position into a strong cash flow generating business this year,” Wingefors wrote. subtext? The era of big spending is coming to an end. It’s time to make money from their investments.

While the CEO’s open letter vaguely refers to “deteriorating economic and market reality” as responsible for the restructuring, you don’t have to look far for more concrete reasons. Just a few weeks ago, Embracer announced that the $2 “Transformer” one billion Partnership The negotiation had failed. It also lowered its profit forecast for next year from $965 million to $1.3 billion to $655 million to $840 million due to the game being delayed.

There is also the state of the global economy in general, which has seen interest rates rise around the world after spending a decade near zero. It’s a time some have called “The end of the ‘free money’ era”, as investors have become less willing to throw money away after more speculative investments. Embracer Group has taken its own controversial billion-dollar investment from the Saudi-backed Savvy Gaming Group.

The letter from Embracer’s CEO gives few details about which projects might be affected or how many of its 17,000 employees might be laid off as a result of the restructuring. However, he notes that this will primarily affect unannounced projects with “low expected returns”, with “all major announced releases” set to launch as planned. Remnant 2, Warhammer 40,000 Space Marine 2, Payday 3, Hot Wheels Unleashed 2: Turbocharged, Arizona Sunshine 2, Alone in the DarkAnd Homeworld 3 All are on this year’s Embracer release schedule.