Embracer Group is a Swedish media holdings company who have amassed a wide array of talent when it comes to video game development studios. Amidst the acquisition talks, which have become the norm in the modern age of gaming, their name occasionally pops up as consideration for being an "empire" or sorts. They have purchased names like Crystal Dynamics, Limited Run Games, and have ownership in the entertainment ventures of Lord of the Rings.

The company is seeing a shift in their business model, however, as their recent acquisitions of properties has made them heavy in the evolving global economy. In an open letter press release, they state how their impending consolidation, which includes layoffs, reduced third party publishing, the cancelling or lengthy pausing in games projects, and the closing of some divisions with their ecosystem.   

"The actions for each affected company will be implemented by the new interim COO and CSO in collaboration with each operative group CEO and management teams", the statement reads. "Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this.

It is painful to see talented team members leave. Our people are what make up the very fabric of Embracer. I understand and respect that many of you will be worried about your own position and I don’t have all the answers to all questions. I want to be clear that the decisions about this program were not taken lightly."

The full press release can be read here.

Upcoming releases under Embracer Group include Remnant 2, Warhammer 40,000 Space Marine 2, Payday 3, Hot Wheels Unleashed 2: Turbocharged, Arizona Sunshine 2, Alone in the Dark, and Homeworld 3. Add into that, the recently released Dead Island 2 has been a surprise hit.

The message being, for an entertainment empire, Embracer Group seems to have bought more than they intended to chew. Quality over quantity, and losing talent is something that's nearly avoidable, but in a global economy that's still reeling from the impact and aftereffects of Covid-19, hefty investments like the abundant purchases Embracer Group would have rippling effects for the talent working on the games.  

It is worth noting that the Tomb Raider project and the new Perfect Dark game are safe for now.