Embracer Group is battling the war despite Lord of the Ring: studios opened and the games cancelled

The vast gaming giant announced on Monday that it was finally able to start a demanding internal restructuring.

In an open letter signed by Lars Wingefors, CEO of the company, we know in fact that a plan of drastic cost reduction intended to reduce the financial risk is not a viable solution. The new interim COO and CSO will implement that program, who will manage the complex transition phase. In the past few years, Embracer has invested in realizing a key acquisition and implementing an organic growth strategy, the statement reads. It was recently announced that the rights of the Lord of the Rings, as well as the acquisition of Crystal Dynamics in Montreal resulted in the inclusion of that list of specialized IPs like Tomb Raider, Deus EX e Legacy of Kain in the catalog.

However, these steps do not seem to have ensured a stable growth for Embracer Group, which has now decided a drastic cost reduction operation, which will continue until at least March 2024. In this case, several development teams will be shut and canceled a number of videos, or stopped a lot of work on this subject. The company hasn’t offered more specific details at this stage, but has guaranteed that the majority of the newly announced titles will appear as planned. You said them in reference to Remnant, Warhammer 4,000: Space Marine 2, Payday 3, Hot Wheels Unleashed 2, Turbocharged, Arizona Sunshine 2, Alone in the Dark e Homeworld 3.

There is no statement made by Embracer Group about the software houses that are being restructured in the coming months, which means that they are going to be closed, and with the consequences of unaddressed damages.