Embracer is considering more layoffs and game cancellations

Embracer Group warns that this year’s restructuring is only in the early stages and more layoffs, studio closures and game cancellations could follow. No concrete announcements have been made about this yet.

Phil Rogers, interim chief strategy officer, explains interview with GamesIndustry.biz what the restructuring entails. “We expect more restructurings and cancellations, possibly resulting in more studio closures.” Rogers did not provide further details on these plans, but emphasized that cancellations would be based on expected commercial success and enjoyment of the game. “A game should be fun to play. Bigger is not always better.”

The interview is a response to the restructuring underway at Embracer Group. Earlier this month it was announced that about five percent of the gaming company’s staff will be laid off and that fifteen games will be canceled. This restructuring was used to reduce net debt of $1.4 billion. The Swedish holding company has purchased various game studios and publishers in recent years and has since closed, among others, Saints Row studio Volition and Studio Onoma, the maker of Lara Croft Go and Hitman Go.