Embracer Group Restructuring Puts Kingdom Come Developers at Risk

• Swedish publisher Embracer Group has run into trouble
• He is forced to restructure his wide portfolio of game studios
• Some Czech and Slovak developers are also at risk

The publisher Embracer Group is not very well known to the general public, yet it has recently attracted the attention of the video game community with a series of impulsive purchases of working studios. Embracer’s buying frenzy almost became a meme, with the company buying whatever it could find. However, the rocket growth of the portfolio brings with it a number of problems, so many people watched with bated breath how the company would handle its acquisitions. At the same time, there was also a possible restructuring, which Embracer is now forced to do.

Czech and Slovak developers may also feel the restructuring

To what extent the publisher will optimize its portfolio of game studios is not yet known, however, we can expect the closing of studios, mergers or mass layoffs. After all, the Swedish giant employs over 16,000 people in 138 studios in more than 40 countries around the world, which are certainly not small numbers. Their portfolio includes, for example, THQ Nordic, Deep Silver, Crystal Dynamics, literally Lord of the Rings, Coffee Stain, Gearbox, 3D Realms, Dark Horse Comics or Limited Run.

What is not obvious at first glance is the fact that Embracer also has a number of Czech and Slovak studios under its belt, such as Ashborne Games from Brno (who are currently preparing the game Last Train Home), Nine Rocks Games from Bratislava (who have, for example, the popular Way of the Hunter) or one of the most famous Czech studios, Warhorse Studios, whose Kingdom Come flew around the world. How a possible restructuring will affect them is a big question, but layoffs, mergers or even termination of operations would have a major negative impact on the video game industry in the Czech Republic and Slovakia.

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The coming weeks and months will be a big question mark not only for Embracer employees, but for the video game community as well. More than development is at risk 200 new games, while some of them will surely fall victim to restructuring. Let’s hope that domestic and Slovak developers avoid dark scenarios.