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Embracer Group has expressed plans to drop studios and issue company-wide layoffs, choosing instead to focus on the Lord of the Rings franchise, even despite the recent stumble that was Gollum. This statement comes during a complete restructuring within the company. But these significant decisions and pervasive restructuring come at a cost. The Embracer Group recently announced plans to terminate ongoing projects, close studios, and initiate a large number of layoffs. Although the precise number of affected employees hasn’t been confirmed, if the number of changes is anything to go by, it is not small. But needless to say, things are being shaken up inside Embracer Group.
In a letter to Embracer’s 17,000 staff members, the CEO, Lars Wingefors, outlined the company’s plans to downsize and keep only the most important expenditures. This includes dropping third-party publishing activities, and prioritizing internal intellectual property development while securing funding and making big triple-A games.
Embrace Group Has Big Plans For The Lord of The Rings
During a webcast following the restructuring announcement, Embracer executives announced that they have chosen to discontinue any projects deemed financially unviable. Interim chief operations officer Matthew Karch highlighted The Lord of the Rings video games as a focal point moving forward.
CEO, Lars Wingefors, added that the company will be a lot more selective with its projects from now on. He cautioned employees that the company would prioritize accountability across the organization, which makes it seem that this won’t be the last batch of layoffs.
Embracer Group’s Endless Opportunities
Embracer owns some prominent and recognizable names in the gaming industry. Names like Middle-earth Enterprises and well-known companies such as THQ Nordic, Saber Interactive, Gearbox, Crystal Dynamics, Eidos-Montreal, and many others. In August 2022, Embracer acquired the rights to The Lord of the Rings and The Hobbit. Subsequently announcing plans to explore various opportunities for creating new content based on J.R.R Tolkien’s works.
Although the most recent Lord of the Rings game, Gollum, proved a critical failure, the franchise is a platform for all manner of potential gaming projects. It’s more a question of execution