The Rise and Fall of Embracer (aka THQ Nordic)

[Abu Antar]

Say farewell to Timesplitters, bros.
https://www.videogameschronicle.com...itters-studio-faces-closure-before-christmas/

 

[mindx2]

Say farewell to Timesplitters, bros.
https://www.videogameschronicle.com...itters-studio-faces-closure-before-christmas/

What's with the Santa faces...?

 

[mindx2]

Is this like a poor man's Stalin erasure?

 

[Roguey]

What's with the Santa faces...?

It's for people who don't want to show their faces to the internet.

 

[mindx2]

What's with the Santa faces...?

It's for people who don't want to show their faces to the internet.

In today's social media millennial driven look-at-me-world?! Shocked I say, SHOCKED!!

 

[NaturallyCarnivorousSheep]

Meanwhile, the whole industry is getting raped by the job-creator class...

This is a bit misleading. This year has been riddled with "relative" flops, from forspoken through diablo to starfield. The industry woke up last year realising that with pandemic being over the sales will go down so a lot of projects are being wrapped up and reductions are being made, this wasn't enough, so now you see more broad restructuring, shutting down projects etc.

Also some bets people have made during pandemic like the metaverse and web3 gaming were(thankfully) a complete failure so again that side of the industry is getting whacked.
As for embracer it seems the entire buy every studio and IP there is behaviour was just them trying to get bought out by the Saudis and that deal fell through, now they have to make the company profitable somehow.

 

[taxalot]

People had time during the pandemic to develop a lot of games that people could not play once they get finished as the pandemic is over. What a fucking shock.

 

[Infinitron]

https://www.eurogamer.net/layoffs-hit-galaxy-on-fire-chorus-developer-fishlabs

Layoffs hit Galaxy on Fire, Chorus developer Fishlabs - sources​

UPDATE: Embracer confirms 50 jobs losses.

ORIGINAL STORY 4pm UK: Fishlabs is the latest developer to see layoffs as part of the ongoing cuts at parent company Embracer, Eurogamer understands

Sources close to the studio informed Eurogamer of the layoffs today, after team members were told this morning. Around 50 positions are thought to be affected.

Eurogamer has contacted Embracer for comment.

Today's layoffs leave Fishlabs downsized for the forseeable future, Eurogamer understands. The developer previously had 95 staff, with a handful recently let go in September after a smaller project based on internal IP was cancelled.

Now, more than half the remaining team have been laid off, sources say - after Embracer told staff members that it was no longer moving forward with the developer's main project.

Fishlabs most recently released Chorus in 2021. Embracer subsequently stated that the game had not reached sales expectations.

The studio also assists with development work undertaken elsewhere, such as the Nintendo Switch ports of Saints Row The Third and Saints Row 4: Re-Elected, and the Xbox port of Valheim.

Eurogamer sources described the announcement as a surprise, especially so close to the end of the year. There's concern too for staff currently working in Hamburg on foreign work visas.

Earlier this month, Embracer confirmed it had laid off 900 staff over the past quarter, around five percent of its overall workforce, as part of its "comprehensive restructuring programme" announced in June.

These layoffs include job losses at Tomb Raider developer Crystal Dynamics and Mythforce developer Beamdog, as well as reports that TimeSplitters developer Free Radical Design is being shuttered.

UPDATE 5.30pm UK: Today's layoffs at Fishlabs have now been publicly confirmed, following our report earlier this afternoon.

In a statement, Fishlabs parent company Plaion (itself owned by Embracer) confirmed a "restructuring" at the studio "expected to impact around 50 positions".

"Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio's unannounced project (also referred to as "Project Black") has made this step unavoidable," a spokesperson said today. "The remaining team will continue to work on the existing co-development projects in partnership with other Plaion and Embracer Group studios.

 

[Abu Antar]

Insurgency devs seemingly getting dealt a death blow. Seemingly, because there has been no response from Embracer.
https://insider-gaming.com/insurgency-developer-new-world-interactive-shut-down-by-embracer-group/

 

[deuxhero]

Job listings suggested the new [New World Interactive] IPs would be a looter shooter and a cover-based shooter.

Nothing of value lost.

 

[Infinitron]

Insurgency devs seemingly getting dealt a death blow. Seemingly, because there has been no response from Embracer.
https://insider-gaming.com/insurgency-developer-new-world-interactive-shut-down-by-embracer-group/

https://www.eurogamer.net/embracer-confirms-layoffs-at-insurgency-developer-new-world-interactive

UPDATE:Saber Interactive has confirmed to Eurogamer that New World Interactive has not been closed down.

 

[StrongBelwas]

Say farewell to Timesplitters, bros.
https://www.videogameschronicle.com...itters-studio-faces-closure-before-christmas/

https://www.freeradicaldesign.co.uk/

 

[Infinitron]

https://www.videogameschronicle.com...losures-of-timesplitters-studio-free-radical/

Embracer finally confirms closure of TimeSplitters studio Free Radical​

“IT’S WITH A HEAVY HEART THAT WE MUST ANNOUNCE YET ANOTHER DIFFICULT DECISION”

Plaion, the Embracer-owned games publisher in charge of TimeSplitters developer Free Radical, has confirmed the studio has been closed.

“It’s with a heavy heart that we must announce yet another difficult decision,” the company said in a statement issued to VGC.

“Today, we have to confirm the official closure of Free Radical Design, and say goodbye to many remarkable, talented and hard-working people.

“We are beyond grateful for their incredible contributions to PLAION and wish them the best of luck and success on their professional journey from here on out.”

VGC reported last month that Free Radical was at threat of being closed just two years after it was established, as part of huge company-wide cuts at Embracer and its owned publishers.

Multiple developers posted on social media this week, claiming that all 80 remaining staff at the company have been let go.

For the past six months, Embracer has been carrying out a restructuring plan which has already seen some game studios closed and some projects cancelled.

The company confirmed earlier this month that over 900 employees were let go during its second quarter ended in September.

It’s not yet clear what the closure will mean for the future of TimeSplitters, the classic first-person shooter series the new Free Radical was re-established to revive.

The first iteration of Free Radical Design was formed in 1999 and developed the TimeSplitters series and Second Sight. Following the disappointing reception of Haze and a cancelled Star Wars: Battlefront project, the studio went bankrupt in 2008.

Plaion and its parent company Embracer announced in May 2021 that a new Free Radical Design had been established by original founders Steve Ellis and David Doak to bring the TimeSplitters IP “back to life”.

 

[Abu Antar]

3D Realms are now 2D Realms, as half the studio is axed. Slipgate hit as well.
https://www.gamedeveloper.com/business/embracer-reportedly-cuts-staff-at-3d-realms-slipgate

 

[Infinitron]

 

[Baron Dupek]

https://freeradical.fandom.com/wiki/TimeSplitters_(2021)/Anonymous_Interview

How far was the game into development?

Still a ways out. 2 years probably. The direction of the project changed earlier this year [2023] around March. We did a massive 180 into a TS2 Remake(ish). Remake with a few new/slightly changed levels and an alternate timeline story. Originally it was a Fortnite clone. Nobody wanted that really, not even us, but we didn't have much of a choice for a long time.

there was much more
https://freeradical.fandom.com/wiki/TimeSplitters_(2021)
https://www.artstation.com/crazyb2000/albums/10308096

no surprise they nuked 'em - just look at this! They made these things in 202x ffs!

 

[flyingjohn]

-Promise a battle royale timesplitters
-After years of funding say, "hahah I was just joking, can we make timesplitters 2 remake?"
-After years of funding the development gets reset because of switching to a new engine with the promise of getting something out in 3+ years
-Get fired
Embracer did the right thing.

 

[Alienman]

lol, what the hell is that kind of clothing?

First I just went with typical video game design in my head, but then I started looking. And it's bizarre. The netting gets me the most.

 

[abija]

Sure screams hax0r.

 

[mediocrepoet]

lol, what the hell is that kind of clothing?

First I just went with typical video game design in my head, but then I started looking. And it's bizarre. The netting gets me the most.

It implies she smells like a wharf, so the local fishermen got confused.

 

[deuxhero]

She was in TS2 and FP (and TS1 with a different outfit). It's a pretty faithful recreation of her.

https://timesplitters.fandom.com/wiki/Chastity_Detroit

 

[Alienman]

I don't see how it changes anything, especially if you haven't played it. Also nice name

 

[Baron Dupek]

Another day, another layoffs, another peek into old archives

-Do they also have the other Duke3D prototypes?
-Yes and these prototypes are in the hand of the Ion Fury developers

it's all porn, isn't it?
That's how they spend time under THQ - playing WoW and watching porn?

 

[Infinitron]

https://aftermath.site/employees-say-sizable-portion-of-gearbox-owned-studio-has-been-laid-off

Employees Say ‘Sizable Portion’ Of Gearbox-Owned Studio Has Been Laid Off​

"All disciplines at all levels" have been impacted

On Friday, layoffs hit Lost Boys Interactive, a Gearbox-owned developer that employed over 400 people. While the full scope of the layoffs remains unclear, former employees are saying a “sizable” portion of the company was let go and describing what happened today as “massive” layoffs.

Numerous ex-Lost Boys employees have taken to LinkedIn to share the regrettable news.

“It seems a sizable portion of Lost Boys Interactive was laid off today, including myself,” wrote Jared Pace, a producer at Lost Boys. “Still trying to understand the scope of it all, but sadly this is a song and dance we're all familiar with.”

Pace told Aftermath that layoffs “affected all disciplines at all levels.” As of this publishing, Gearbox and Embracer have not replied to Aftermath’s inquiries about the total number of employees impacted.

Lost Boys Interactive was founded in 2017 and has contributed to games like Tiny Tina’s Wonderlands, Diablo IV, and The Quiet Man. In 2022 it was acquired by Borderlands creator Gearbox, at which point it boasted a headcount of over 220. Gearbox nearly doubled Lost Boys’ size prior to today’s layoffs. But much has changed since 2022: Embracer, which owns Gearbox, bet the house on a $2 billion deal with a Saudi investment group that fell through in 2023. Ever since, its many, many properties have been hit by layoffs on a near-monthly basis.

Multiple laid-off Lost Boys workers described the company as a great place to work and lamented this sudden, unceremonious conclusion.

“It was an absolutely fantastic time full of challenges and beautiful friendships,” wrote Spicer McElroy, former art director at Lost Boys. “If you see anyone from Lost Boys looking for work, grab them immediately. They are the most amazing group of artists I've ever worked with.”

This week alone, Unity has laid off 1,800 people, Twitch has laid off 500 people, Discord has laid off 170 people, and now Lost Boys Interactive has laid off dozens, at least. That brings the total number up to over 2,500. It’s gonna be a rough year.

https://www.eurogamer.net/gearbox-owned-studio-lost-boys-interactive-hit-by-sizable-layoffs

UPDATE 2pm UK: A spokesperson for Lost Boys Interactive has confirmed the layoffs to Eurogamer.

"Lost Boys Interactive made the difficult decision to restructure our studio to ensure we can succeed in spite of headwinds facing the industry right now," reads the statement. "Unfortunately, this does mean we will separate from some of our team members and we’re working closely with those affected. We know this is a hard time for this talented and experienced group of people and will provide support and assistance through this transition to those leaving."

Gearbox declined to comment.

 

[lycanwarrior]

Post from a supposed game industry vet. Made some interesting evaluations of Embracer, Square and Ubisoft:

https://www.reddit.com/r/Games/comm...=web3xcss&utm_term=1&utm_content=share_button


GameDesignerDude
•14 days ago

While I generally agree Square is not well-run, Embracer is a perfect example of a company that's doing even worse.

I mean, I'm not going to argue that Embracer seems like a very questionable organization. I don't generally view them as a "publisher" in the same way as established video game companies though. They are really just a conglomerate/holding company that is gonna let all their owned studios fend for themselves and cut all the ones that don't make them money.
It's not a great situation. It reminds me of Infogrames back during their peak of buying things up. It seems fairly destined to follow the same trajectory they did, eventually having to shut down or sell off most of their stuff when the money dries up.

I will add that Embracer was the only group willing to buy Eidos from Square. Seemingly no one else found value in them or at least not for the highest price SE could get.

This is a bit I kinda am not so sure about. Speaking to other folks in the industry, I'm not sure many companies fully realized Square's desire to part with them quite that much. When the deal went through, I heard a lot of mumbling in the realm of, "if we knew they were available that cheap, we would have bought them." (Especially considering it included the IP rights.) $300m was a steal in terms of recent studio acquisitions. It definitely caught a lot of people off guard. I'm curious how it went down. Embracer probably was going around throwing money at everyone seeing what they could gobble up, and hit a lucky moment here.
As to if it's doomed based on the fact that it's Embracer, that's hard to say. I would imagine Eidos, Crystal Dynamics, and Gearbox are pretty safe for a while. Tomb Raider would auto-sell many units, so I presume they will at least let them get something out the door before they reevaluate.

Financially, Ubisoft looks like it's in worse shape than SE after losing $500M last year and having little to no presence in the live service/mobile space.

Historically, Ubisoft has been in a pretty good position though. Ubisoft is, honestly, one of the better run companies in the industry. I spent many years there and know many folks who still happily work there a decade later. They are very organized and methodical. It's one of the few companies I'd actually go back to work for if my situation changed. Their financials this year have been a lot better than last year. 2022-23 seemed like a major outlier for them financially. Last year was the only posted operating loss for Ubisoft in a decade. (Last yearly report with a negative operating income was 2013.)
This whole topic is very interesting, though. I do enjoy talking about the business side of things. There is certainly a major gulf between how Japanese and non-Japanese game studios are run, however. The point I made in another comment noting how heavily Square-Enix relies on outsourcing, as an example, is really not something that is so common in the western game industry. (Level 5, ArtePiazza, Acquire, etc.)