At a loss: The fallout of Embracer’s months-long restructuring

Last week, the Embracer Group announced that it was finished with its internal restructuring program. These cost-cutting measures resulted in the loss of about 1,400 jobs, the closure of at least three and as many as seven studios and the cancellation of about 30 games. It sold Gearbox Entertainment and Saber Interactive to Take-Two and Beacon Interactive, respectively, at a loss. How did this happen, and what remains for the company and the industry now?

Embracer Group was once the poster child for the games industry’s pandemic-era spendthrift ways. It either acquired or invested in more companies than most in 2021-2022. These included, in no particular order, Gearbox Software, Crystal Dynamics and Eidos Montreal, Middle-Earth Enterprises, Perfect World Entertainment, Aspyr, Beamdog, 3D Realms, Tripwire Interactive and Dark Horse Media, among others.

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Rachel Kaser

Rachel Kaser is a gaming and technology writer for from Dallas, Texas. She's been in the games industry since 2013, writing for various publications, and currently covers news for GamesBeat. Her favorite game is Bayonetta.