This morning, Embracer Group CEO Lars Wingefors released a statement explaining that the company is undergoing a “restructuring program” that will result in layoffs, the closing and/or divestment of some studios, and the potential canceling of unannounced video games. Matthew Karch has been appointed as interim COO to lead the consolidation of operations alongside new CSO Phil Rogers, who remains CEO of Embracer subsidiary Crystal Dynamics – Eidos. Basically, it’s a bad situation for the unspecified number of people who will lose their jobs. (The total number of workers employed at Embracer is currently a little under 17,000 globally.) However, Crystal Dynamics in particular has released a message to assure the Embracer restructuring will have “no impact” on the development of Perfect Dark with developer The Initiative or a new Tomb Raider with publisher Amazon Games.
https://t.co/bDRpwKvOmv pic.twitter.com/CotpWajxNW
— Crystal Dynamics (@CrystalDynamics) June 13, 2023
To back up a little, Embracer Group had been going on an incredible spending spree the last few years, with its most extraordinary purchase being of the Lord of the Rings IP. Many of its purchases were becoming their own subsidiaries, which is great for studio autonomy but not necessarily the most efficient business process in the sense of introducing role redundancies. However, probably the most pressing catalyst for this Embracer restructuring is the fact that the company recently lost a potential $2 billion on an unannounced deal that had fallen through. (The Lord of the Rings: Gollum obviously is not doing hot either.) We are watching the other shoe drop right now.
But Crystal Dynamics is proceeding full steam ahead with Perfect Dark and new Tomb Raider, at the least. Then again, there have been past indications that Perfect Dark might be in development hell at lead developer The Initiative, and its absence at the Xbox Games Showcase was palpable. So that game might not be anywhere near release with or without Embracer potentially laying off hundreds or thousands of people. Tomb Raider seems to be in a safe place though.
