Embracer Group, Asmodee, and LoTR rights owner announced a huge restructuring program, layoffs, and closures that may affect the hobby space.
The Embracer Group has been buying all kinds of IP and companies lately, but it seems they might have spread themselves too thin. We recently talked about how they are teaming up with Amazon for a new LOTR video game, have new movies and shows in the works, and, maybe most importantly, for the tabletop hobby, they bought Asmodee.
However, their debt has climbed a little too high with all this expenditure. Either way, after years of buying up studios, IP, and games, they are restructuring and closing down studios, canceling games, and laying off employees.
LOTR & Asmodee Owner Announces Closure of Studios…
In a recent press release, Embracer announced their upcoming closures and layoffs via a massive restructuring.
Today we announce a comprehensive restructuring program that will enable us to realize untapped potential in Embracer Group and better optimize the use of our resources. Across the group, we are now initiating multiple actions to strengthen our cash flow generation and leverage our portfolio of IPs to become a stronger company and setting out on a stable future to build even greater games to the benefit of gamers and fans across the globe, says Lars Wingefors, CEO and co-founder of Embracer.
Immediate Closures & Layoffs May Disrupt the Hobby, Comic Books & More
If you don’t know just how much Embracer owns, and what this could affect from a games and hobbies perspective, here’s a quick rundown:
Miniature Market (Retailer/Distro), Fantasy Flight Games (FFG), Dark Horse Comics, and Atomic Mass Games (AMG) in the States alone. They also own the rights to license LoTR miniatures and media like TV shows and movies (as they even bought Middle-Earth Enterprises).
Furthermore, Asmodee also distributes for many other companies in the hobby space beside their studios, like CMON, Conquest, and Two Thin Coats Paints.
Then, they own various video game companies, such as Gearbox, Volition, Crystal Dynamics, Eidos Montreal, 3D Realms, and many more. They didn’t name any studios at this point, so we’re not sure what will get cut.
- The program is also estimated to reduce overhead costs at least 10%, or at least SEK 0.8 billion on a yearly basis, compared to the annualized run-rate in Q4 2022/23. The program is expected to be fully implemented by 1 October 2023, and to reduce overhead costs by SEK 0.4 billion in FY 2023/24.
- Reduction of general overhead, corporate, publishing and SG&A costs
- The closing of studios and termination of projects, that have not yet been announced and with low projected returns
Ten percent of a company, this significant means all kinds of closures. Plus, from the sounds of it, we don’t have too long to wait, as they are trying to implement the program by October of this year, which is only a few months away.
They are not shying away from the fact they will be closing studios with low returns and cutting off many projects that have not even started yet. This also means they will not be buying up nearly as much as before, but they do say they want to leave creative freedom in the hands of the studios.
Considering they bought Asmodee for about $2 billion, there might be a lot of games/studios to trim there. Either way, this could be bad news for tabletop gamers and video games; let’s hope some of our favorite games and comics don’t get destroyed.
What do you think about Embracer announcing extensive closures and layoffs that may impact the hobby?
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About the Author: Travis Pasch
Travis Pasch
Job Title: Head Writer & Editor
Joined: 2019
Socials: @paschbass
Bio: Dark Eldar Dracon and Warhammer 40k hobbyist since the third edition in 1998. He also loves camping because you can only paint so much! He joined the Spikey Bits team in 2019 and has been the main daily writer since 2020.
Maybe one day, he’ll finish converting all his Ad Mech models and turn into a true tech enjoyer, complete with sad and happy robot noises!
