Embracer Group seems to have dished up a bit more than it could eat. The company went on a spending spree over the past few years gobbling up as many studios and projects as possible. It was one of the most invested firms in the video game industry purchasing over one hundred studios and IPs since back in 2017.
These include big names such as Gearbox Software, Perfect World Entertainment, 3D Realms, Vertigo Games, Saber Interactive and Square Enix IPs including the Tomb Raider series and Deus Ex. In June, Embracer Group also appointed its interim COO Matthew Karch who was part of Saber Interactive at the time. He would replace the now-departing COO Egil Strunke.
In a statement, Strunke confirmed he left Embracer Group as COO. He claimed to have mixed feelings about the company but says he is excited about the future ahead. Strunke confirmed that he was opening his own company, Strunke Games.
Egil Strunke started at Embracer Group back in 2011 and worked at the company until 2014. He then left only to return in 2019 and worked there until 2023. In a statement, Strunke says the last year at Embracer Group has been “rough”. He says the general market conditions aren’t great but he believes the company will come out stronger than ever.
“Although the last year has been rough, in line with general market changes and industry consolidation, I am positive that Embracer will come out stronger and with a long, bright future ahead of them.”
Embracer Group recently lost a major deal which resulted in a number of layoffs at the firm. Shares in the company dipped by 40% soon after the deal fell through. This deal was reportedly worth $2 billion and would secure the future of multiple projects. While Embracer Group hasn’t confirmed the number of job losses at the company, it was reportedly one of the worst-hit firms in the industry.
The company also closed studios and terminated a number of projects as a result. This includes shutting down Saints Row developer Volition. Embracer has also reportedly looked at selling Gearbox Software which it purchased back in 2021 for $1.4 billion.