Huh, looks like the Gex thing is probably due to an unannounced Square Enix Collective game? If it was funded or contracted before the Embracer deal it would kind of have to be left out of the deal unless Embracer wanted to commit to contract for a 2024/2025 Gex game (lol).
Ah, so from this it's likely SE held on to Gex, Fear Effect and Anachronox as those were probably folded under SE Collective purview in 2015. That makes sense then, it'll be interesting to find out where potentially other legacy Eidos games ended up.
Huh, looks like the Gex thing is probably due to an unannounced Square Enix Collective game? If it was funded or contracted before the Embracer deal it would kind of have to be left out of the deal unless Embracer wanted to commit to contract for a 2024/2025 Gex game (lol).
no, a Gex game wasn't in development. the old SE Collective initiative was to offer up their western IPs to devs to make games for them. Gex merely survived the sale out of luck and probably spite
Personally, im 100% in favor of Microsoft acquiring development studios and/or publishers because first and foremost, they're in a spending mood which is great for Xbox fans like me because it took them long enough and better late than never as I don't ever want to see Microsoft in an Xbox One era again with only 5 studios. Second, under Microsoft, they'll get more money, time and resources to make the games they want to make and third, every game is guaranteed to go on Game Pass day one which is great for me as a consumer first and gamer second.
Not only that but what would you rather have? Microsoft acquiring those studios and them being exclusive to the Xbox platform or Embracer potentially shutting them down to where they don't exist anymore. For me, the choice is easy because the studios, people in them, the games and me as a consumer all benefit.
Hitman IP is owned by Embracer? That can't be right.
Sorry, I meant Deus Ex, not Hitman. As for the rest of your point, I understand, but there's no chance MS will ever have a lack of studios again. I don't think MS making several additional historic third-party IP exclusive is the only alternative to Embracer shutting down studios like CD and Eidos. Amazon has a deal with Embracer for a multiplatform tomb raider and could choose to purchase CD if necessary. There are also numerous third-party publishers that could acquire these studios, which include the likes of Take Two, EA, or even Tencent. It's also possible that Embracer will hold onto CD and potentially Eidos because of the deals that are already in place with those studios. As someone who plays on PS5, Switch, and PC and doesn't directly benefit from Microsoft owning more and more IPs, I'm going to prefer other solutions that allow these games to remain multiplat.
Sorry, I meant Deus Ex, not Hitman. As for the rest of your point, I understand, but there's no chance MS will ever have a lack of studios again. I don't think MS making several additional historic third-party IP exclusive is the only alternative to Embracer shutting down studios like CD and Eidos. Amazon has a deal with Embracer for a multiplatform tomb raider and could choose to purchase CD if necessary. There are also numerous third-party publishers that could acquire these studios, which include the likes of Take Two, EA, or even Tencent. It's also possible that Embracer will hold onto CD and potentially Eidos because of the deals that are already in place with those studios. As someone who plays on PS5, Switch, and PC and doesn't directly benefit from Microsoft owning more and more IPs, I'm going to prefer other solutions that allow these games to remain multiplat.
Amazon doesn't do anything with Luna so I would be shocked if they actually acquired Crystal Dynamics or any studio from Embracer for that matter. Other publishers could go after Crystal and others but would they outbid Microsoft? Probably not and would they be better under those other publishers? Sony would be good but they have Uncharted so I doubt they acquire Crystal and Tomb Raider, Take Two is horrible outside of Rockstar, EA would be good but then again, you never know with them. Tencent is a no thanks from me. Let them stay with mobile and that's it.
I understand your point of view but at the same time, you have a PC so you still have access to Microsoft's first party games and you're not required to buy them in order to play them unless you want to so what's the issue?
Amazon doesn't do anything with Luna so I would be shocked if they actually acquired Crystal Dynamics or any studio from Embracer for that matter. Other publishers could go after Crystal and others but would they outbid Microsoft? Probably not and would they be better under those other publishers? Sony would be good but they have Uncharted so I doubt they acquire Crystal and Tomb Raider, Take Two is horrible outside of Rockstar, EA would be good but then again, you never know with them. Tencent is a no thanks from me. Let them stay with mobile and that's it.
I understand your point of view but at the same time, you have a PC so you still have access to Microsoft's first party games and you're not required to buy them in order to play them unless you want to so what's the issue?
Honestly, I don't know if anyone will bid for CD or Eidos, especially in a high interest rate environment. It's clear that it costs a lot of money to run them with very little returns. MS may be the only publisher to make an offer.
To your second point, even though I have a PC, I prefer playing on a console. I also believe that everyone should be able to continue playing these series on their console of choice, if at all possible. I certainly don't want Sony to acquire them either. Obviously, if it came down to a scenario where MS would acquire them or the studios would be closed, I would hope that MS gets them.
Honestly, I don't know if anyone will bid for CD or Eidos, especially in a high interest rate environment. It's clear that it costs a lot of money to run them with very little returns. MS may be the only publisher to make an offer.
To your second point, even though I have a PC, I prefer playing on a console. I also believe that everyone should be able to continue playing these series on their console of choice, if at all possible. I certainly don't want Sony to acquire them either. Obviously, if it came down to a scenario where MS would acquire them or the studios would be closed, I would hope that MS gets them.
Yeah, im also a console gamer so I understand that point. Not going to lie, I prefer Microsoft to acquire them and others because it's better for me and because I have zero confidence in Embracer Group. I did years ago but when you build what you want to do around a verbal deal, my confidence went away.
Digic, a Hungarian subsidiary of Embracer Group focused on 3D and CGI animation and game trailers, has laid off around 35 members of staff, representing arou...
www.pocketgamer.biz
New Embracer Layoffs
Digic lost around 10% of their staff (35 people) and Zen Studios has lost around 26% of their staff.
Digic, a Hungarian subsidiary of Embracer Group focused on 3D and CGI animation and game trailers, has laid off around 35 members of staff, representing arou...
www.pocketgamer.biz
New Embracer Layoffs
Digic lost around 10% of their staff (35 people) and Zen Studios has lost around 26% of their staff.
Looks like somebody at Embracer made a trip to Hungary and grabbed the scalpel. Really rough what's happening to all the subsidiaries under Embracer because of the absolutely bonkers business strategy, lots of European jobs are have been and will be lost in the coming months.
Several current and former staffers have confirmed there has been a "reduction in force."
www.gamedeveloper.com
Another round of layoffs, hitting Cryptic Studios, subsidiary of Gearbox. They are the developers of various F2P MMOs including Neverwinter, Star Trek Online and Champions Online. It's unclear how many were laid off but Cryptic lead environment artist Scot Boyd said "a lot of amazing people have been laid off" in a LinkedIn update
Sign up for the GI Daily here to get the biggest news straight to your inbox Plaion, a subsidiary of Embracer Group, ha…
www.gamesindustry.biz
Now, Fishlabs is facing layoffs. Some were laid off earlier with a cancellation of a smaller project but now half the studio was laid off. Fishlabs worked on Chorus, ports of Saints Row to Switch, Valheim to Xbox, and assistance on Dead Island II.
Free Radical Design staff are currently in a consultation…
www.videogameschronicle.com
Embracer confirms that Free Radical Design may be closed on December 11, following the consultation process. The studio was formed in 2021 by the original founders to make a new entry in the TimeSplitters series. Both Fishlabs and Free Radical are Plaion subsidiaries.
User Banned (Permanent): Continued inflammatory remarks, aggressive tone, and hostile behavior despite multiple Mod interventions. History of trolling as well.
Embracer basically bought a bunch of underperforming studios and with games taking years to be developed + without that 2b deal, Embracer basically have no money to support all of it anymore.
User Banned (Permanent): Continued inflammatory remarks, aggressive tone, and hostile behavior despite multiple Mod interventions. History of trolling as well.
They are trying to sell the studios and no one wants them because no one wants to spend money right now.
Free Radical was probably being offered for like $1, but no one wanted the liabilities (imo, a stupid move from Microsoft and Nintendo who have connections with Free Radical and could use another studio).
The biggest cost might be the Lord of the Rings license? Maybe they could end the contract early and get most of their money back?
Could also sell all of the Tomb Raider IP to Amazon instead of whatever their current arrangement is.
Selling the Deus Ex, Darksiders, TimeSplitters, etc IPs could generate some cash as well as they're never going to be able to use them.
NEWS: Embracer Group has canceled a Deus Ex video game that was in development for ~2 years and laid off an unspecified number of staff at Eidos Montreal
2023 - Game Industry Layoffs - Powered by Obsidian Publish.
publish.obsidian.md
Iugo Mobile Entertainment - 12/1/23
Slipgate IronWorks - 12/14
Slipgate IronWorks - 1/3/24
Lost Boys Interactive - 1/12
Piranha Bytes - 1/16
Black Forest Games - 1/25
The strategy is basically to cancel anything that won't be coming our in the nearest future. Any new game is probably years away from the release. I think only the near future games will stay but everything else will cancelled or studios closed.
This is the worst decision I've seen in the gaming industry in the past few years. They have 2 well known IPs that could sell milions of copies, no matter how troubled the development was, you steer the ship and make that Deus Ex come out, your life depends on it.
The strategy is basically to cancel anything that won't be coming our in the nearest future. Any new game is probably years away from the release. I think only the near future games will stay but everything else will cancelled or studios closed.
This is the worst decision I've seen in the gaming industry in the past few years. They have 2 well known IPs that could sell milions of copies, no matter how troubled the development was, you steer the ship and make that Deus Ex come out, your life depends on it.
They likely don't have the capital to continue operating these studios. It isn't a matter of troubled development. The company has terrible financials since they didn't actually release anything or create any kind of recurrent revenue stream. So when they lost that billion dollar deal they had no funding to support themselves.
Terrible and wildly irresponsible strategy but I don't think the wild cost cutting is due to anything other than being in survival mode.
They likely don't have the capital to continue operating these studios. It isn't a matter of troubled development. The company has terrible financials since they didn't actually release anything or create any kind of recurrent revenue stream. So when they lost that billion dollar deal they had no funding to support themselves.
Terrible and wildly irresponsible strategy but I don't think the wild cost cutting is due to anything other than being in survival mode.
They put out Dead Island 2 and Remnant 2 last year, I know it's not enough to salvage all the jobs they cut, but the money they made should really be put towards prioritizing Tomb Raider, Deus Ex and the sequels to those successful games.
User Banned (Permanent): Continued inflammatory remarks, aggressive tone, and hostile behavior despite multiple Mod interventions. History of trolling as well.
They put out Dead Island 2 and Remnant 2 last year, I know it's not enough to salvage all the jobs they cut, but the money they made should really be put towards prioritizing Tomb Raider, Deus Ex and the sequels to those successful games.
The next AAA Tomb Raider is being funded and published by Amazon due to a licensing deal.
But it's not clear if they have any games coming out soon that could generate the revenue they need. They're publishing the Alone in the Dark reboot... I don't think anyone even knows that's releasing in a few weeks. Homeworld 3 is releasing soon, but it's very niche.
Beyond that, Gunfire Games and Dambuster and Eidos Montreal (with their new open world Tomb Raider clone) are probably all years away from releasing a game and I'm not sure what other devs they have that can make a major game. I'm not sure who is even supposed to be making the Lord of the Rings game after they paid hundreds of millions for the license.
The next AAA Tomb Raider is being funded and published by Amazon due to a licensing deal.
But it's not clear if they have any games coming out soon that could generate the revenue they need. They're publishing the Alone in the Dark reboot... I don't think anyone even knows that's releasing in a few weeks. Homeworld 3 is releasing soon, but it's very niche.
Beyond that, Gunfire Games and Dambuster and Eidos Montreal (with their new open world Tomb Raider clone) are probably all years away from releasing a game and I'm not sure what other devs they have that can make a major game. I'm not sure who is even supposed to be making the Lord of the Rings game after they paid hundreds of millions for the license.
The Lord of the Ring grab was an attempt to be the licenseholder. They don't want to make TLoR games, they want Amazon, WB, EA and whoever to pay them to be able to make TLoR games.
They put out Dead Island 2 and Remnant 2 last year, I know it's not enough to salvage all the jobs they cut, but the money they made should really be put towards prioritizing Tomb Raider, Deus Ex and the sequels to those successful games.
Tomb Raider is under Amazon if I remember correctly. But for the others, I think it is less about the IPs and more about how far into development they are. If they are 12-18 months away then they may have the funding ro make it happen. But if the new Deus Ex was only 2 years into development then it was probably still 2 to 3 years out. At that point I'd guess they literally don't have the money to get to the finish line.
I think Dead Island 2 and Remnant 2 did well so I do wonder what happens to fhose respective studios since new titles are likely far off.
User Banned (Permanent): Continued inflammatory remarks, aggressive tone, and hostile behavior despite multiple Mod interventions. History of trolling as well.
The Lord of the Ring grab was an attempt to be the licenseholder. They don't want to make TLoR games, they want Amazon, WB, EA and whoever to pay them to be able to make TLoR games.
All the layoffs in the games industry, and especially at Embracer Group, is such a sad sight to see. They were too agressive with their investments, fattening all those newly acquired studios, which couldn't live up to the expectations set as a result of those investments. Now the employees are the victims of these gambles...
INSIDE INFORMATION: Embracer Group AB (“Embracer”) has today entered into an agreement to divest selected assets, from the operative group Saber Interactive for a purchase price of USD 247 million (SEK 2,527 million), including assumed earnout liabilities of USD 44 million (SEK 450 million) but...
embracer.com
Document detailing the divestment of Saber Interactive to Beacon Interactive. The total purchase price is $247 million including $44 million in earnout liabilities. Embracer will also leave the Russian market with this
The included studios in the sale are
Anything branded as Saber
DIGIC
Fractured Byte
Mad Head Games
New World Interactive
Nimble Giant
Sandbox Strategies
Slipgate
3D Realms
with options to get 4A Games and Zen Studios
The studios remaining with Embracer are
Why would anybody buy 4A without the Metro IP? They're gonna have to pay a fee to Embracer from now on, I really don't see them rebooting to a new franchise with the recent announcements.
Why would anybody buy 4A without the Metro IP? They're gonna have to pay a fee to Embracer from now on, I really don't see them rebooting to a new franchise with the recent announcements.
I can. 4A came from Stalker and grew Metro to the (video game) IP it is. They got cloud now, so I think they can weather the storm with Saber backing them
Why would anybody buy 4A without the Metro IP? They're gonna have to pay a fee to Embracer from now on, I really don't see them rebooting to a new franchise with the recent announcements.
It's not that they don't hold the Metro IP, it's just that Embracer (through PLAION) hold the license/publishing rights for the long term future.
Long-term license and publishing rights to all current and future PC/console games in the Metro franchise are held within the Embracer operative group PLAION. These rights will not change regardless of whether the option rights are exercised.
Highly recommend weekend read (that I was too busy reading to post here until Monday!) that could form the basis for a new & improved Embracer Group output strategy discussion thread.
With Saber Interactive now confirmed as the first major divestment for the struggling games firm, we look at the other potential sales Embracer could make
So with Embracer already eyeing up ways to get the weight of its bloated group under control, let's take a look at the potential sales candidates that remain. While it can be hard to keep track of what has been acquired over the years – so hard that there's a Wikipedia page dedicated to it – I've broken things down according to the 11 operational groups that Embracer owns.
Dead Space & Resident Evil 4 were the warm up acts for the main Alone in the Fucking Universe Dark event that was delayed until headlining the show this week.
There are remakes of Dead Space & Resident Evil 4 in January & March respectively to build up the action horror fanbase before it's arrival later in the year. Decent showing but one thing really stood out to me. Namely, when you ask for more arcade racers & three arrive from the same publisher. Even the names are similar. 'Candyman, Candyman, Candyman, Candyman...'
'You were not content with the stories, so I was obliged to come.' Smashin' Extended Universe! Dat Crashing Crossover! Arcade Armageddon! 'What's the matter, THQ Nordic? Scared of something?' Playtest on steam for the Alpha version for Stuntfest. Wreckfest still getting post-launch support alongside a recent Switch port that impressed Digital Foundry. By far the main draw is Wreckreation, far more ambitious than prior releases since leaving Criterion Games. Last blog entry in 2020 had its open world racer tagged Dangerous Driving 2 (Alex Ward likes his movie references so I'm sure he'd approve). Be real interested to read interviews, know if this is what became of it & if so, how it has evolved over the years. 'It was always you THQ'.
Don't know why but whenever I get excited to play a new racer, horror (mostly) ensues. i should probably stop taking along hard look in the mirror & recanting Candyman whenever a new one is announced. PowWow massacred my Stuntfest Boy Jected & gets Rekted by going F2P, Steam Early Access with paid DLC expansion pack (the horror multiplied!) then Left 4 Dead.
Wreckreation is still on Vacation as Three Fields Entertainment has taving taken leave of its senses by making an open world game with even less intricate course design than Burnout Paradise. WHYWHYWHYWHYWHYWHYWHY.gif But hey, at least we'll always have Paris for Wreckfest: This is For the Sequel is the bees knees & videogame crafter since 1996, Milestone is still Hot Wheels Unleashing a Turbo Charged MOTOGP thing or 24. Last but no means least, Broncos, Let's RIDE 5 with Free Pack 06. But none of the above will ever fill the Monster Energy Supercross - The Official Videogame 7 shaped void in my sugar clogged heart. Still hurts my soul or maybe its the after effects of drinking a 6 pack of energy drinks in one go. *burp*
VERY LATE VERY COOL EDIT: Wreckfest - PC Crossplay Update OUT NOW! Get Ready, Wreckers & Racers: PC Crossplay is Here (March 22, 2024). Steam, GOG, EGS users get rekted together!
INSIDE INFORMATION: Embracer Group AB (“Embracer”) has today entered into an agreement to divest selected assets, from the operative group Saber Interactive for a purchase price of USD 247 million (SEK 2,527 million), including assumed earnout liabilities of USD 44 million (SEK 450 million) but...
embracer.com
Document detailing the divestment of Saber Interactive to Beacon Interactive. The total purchase price is $247 million including $44 million in earnout liabilities. Embracer will also leave the Russian market with this
The included studios in the sale are
Anything branded as Saber
DIGIC
Fractured Byte
Mad Head Games
New World Interactive
Nimble Giant
Sandbox Strategies
Slipgate
3D Realms
with options to get 4A Games and Zen Studios
The studios remaining with Embracer are
Blue & Yellow flag washing anyone? Embracer Group taking pointers on political spin from the Kremlin confirmed! On a more serious point, maybe don't use inappropriate phrases involving Russia like...
Embracer will initiate a liquidation process to dissolve any Russian companies in accordance with Russian legislation.
Emphasis mine. What in the everlasting fuck, who the hell proof read this corporate bullshit?! Making tone deaf statements is a world renowned delicate speciality at Embracer Group HQ.
USD 275 million paid in Embracer Group shares (together with the equity part of the Upfront payment, the “Consideration shares”), of which:
14,033,140 B shares of Embracer Group, equivalent of USD 113 million, issued at closing and vested 3 years after closing, conditional upon completion of certain projects
189,783 A shares and 13,719,168 B shares of Embracer Group, equivalent of USD 112 million, issued at closing and vested 6 years after closing, conditional upon completion of certain projects; and
6,209,354 A shares of Embracer Group, equivalent of USD 50 million issued at closing and vested 6 years after closing, conditional upon completion of certain projects, and the Sellers remaining employed by the Company 6 years post closing.
In addition, the Sellers will enter into agreements with Embracer Group which include a 20 year profit share of Saber Interactive’s business performance as part of Embracer Group. The profit share scheme incorporates 10% of Saber Interactive’s realised annual EBIT above USD 76 million, i.e. after 20 years the Sellers are entitled to receive a total amount equal to 10% of Saber Interactive’s accumulated EBIT that exceeds USD 1,520 million (20 years x USD 76 million).
The going-concern of Saber Interactive as part of the Embracer Group is supported by the commitment of the Sellers to remain employed within the Company for at least 6 years. In addition, the Sellers’ commitment to the combined entity is strengthened by them, combined, becoming the second largest shareholder block of the Company and their 20 year profit share scheme. [yea, about that...]
All conditions for the transaction, including regulatory approvals such as merger control clearance, have now been fulfilled and the transaction is thereby completed.
The upfront purchase price of USD 150 million on a cash and debt free basis has today been paid through a cash payment of USD 100 million to the seller and through 6,209,353 B shares issued to the seller, corresponding to a value of USD 50 million. Furthermore, an additional 34,151,445 shares have been issued today as part of the earn-out, corresponding to a value of USD 275 million (divided on 6,399,137 A shares and 27,752,308 B shares). The shares paid as part of the earn-put vest after 3 and 6 years, respectively, in accordance with the information previously announced in the press release on 19 February 2020. Finally, additional compensation for levels of net cash and net working capital acquired as per the closing date has been settled through a combination of USD 8.4 million in cash and 1,424,559 B shares issued to the sellers corresponding to a value of USD 11.5 million. Thus, total compensation for levels of net working capital amounts to USD 19.9 million. In total 41,785,357 shares have been issued today.
All shares in accordance with the above have been issued, subscribed for and allotted. [doubt.gif]
Help! Well I do I know that 4 years is less than 6 years, which is less than 20 years. I think. Is that how time works? Please confirm if A shares & B shares confirm to the space time continuum. Future reference depending on how things play out with the remainder of the potential sale/divestment, here are the press releases for the acquisitions of 4A Games & Zen Studios.
A total earn-out consideration of a maximum of MUSD 35 within five years may be payable by Embracer upon fulfilment of agreed targets whereof MUSD 15 is payable in cash and MUSD 20 in newly issued B shares in Embracer (“Earn-Out Consideration Shares”). The Earn-Out Consideration Shares are issued at completion of the acquisition and are subject to claw back rights if targets are not met and lock-up commitments over a period of one month when vested after the respective target has been met. [emphasis mine, still no idea!]
The agreed earn-out consideration that may be payable by Embracer, a maximum of MUSD 35, is paid with up to MUSD 15 in cash and up to MUSD 20 is paid with 1,233,035 newly issued B shares issued at closing. The Earn-Out Consideration Shares will be subject to lock-up over a period of one month after they have vested and vest within five years upon fulfillment of agreed operational targets and continued employment for key employees. The Earn-Out Consideration Shares are issued at closing but subject claw back rights if targets are not met.
Purchase Price
The parties have agreed not to disclose the full transaction terms due to commercial reasons. The upfront consideration consists of a mixture of cash and Embracer B shares. The earnout consideration of cash and shares is based on financial targets up until 2025 (5 years). The terms and conditions for the acquisition is in line with previous Saber transactions [intrigue!]
It's not that they don't hold the Metro IP, it's just that Embracer (through PLAION) hold the license/publishing rights for the long term future. 'Long-term license and publishing rights to all current and future PC/console games in the Metro franchise are held within the Embracer operative group PLAION. These rights will not change regardless of whether the option rights are exercised.'
Not really different than Saber current practice of developing games for other publishers.'
Yep although it all depends on the terms of the contract signed with the METRO rights holders (be they Dmitry Glukhovsky personally or any publishing hourse/rights holding company). Next entry due later this year is from developer/publisher Vertigo Games (The 7th Guest VR, Arizona Sunshine 1 & 2 to name a virtual few). Primer for those without a headset or a 7th clue...
Vertigo Games, the VR publishing and development arm of the global PLAION Group, is a multi-platform VR publisher and developer with offices in Rotterdam & Amsterdam, The Netherlands, and Los Angeles, California. With teams in the areas of development, publishing and LBE (location-based entertainment) distribution, the company offers a portfolio of quality VR games that provide novel, powerful and full-featured gaming experiences both inside of the home. Games include Vertigo Studios’ Arizona Sunshine® 2, The 7th Guest VR, and the epic VR action FPS After the Fall®. Upcoming titles include the recently announced Metro Awakening, set to debut in 2024. Vertigo Games is owned by me Dio! a PLAION company.
“This origins story is so essential to me,” said Dmitry Glukhovsky. “It feels like returning to the foundations and roots of the series – now to the level that VR technology can bring…”
Faithful to its legacy, Metro Awakening immerses players in an intense first-person adventure, seamlessly blending survival and stealth action enhanced by cutting-edge VR technology. While armed with some of Metro’s most iconic survival gear, venture into the depths of the subterranean world and feel the panic as you scramble for gas mask filters; experience the pulse-quickening charge of your flickering headlamp in the darkness; and embrace the heart-pounding intensity of combat.
In addition, development continues separately at 4A Games on the next mainline installment of the Metro series. Their latest update can be found here.
Edit: Typo - also while I'm here, forgot to mention Vertigo Games is hiring multiple positions at both its Amsterdam & Rotterdam studios as development of Metro Awakening nears completion. The job listings states there are 'multiple AAA VR games in the works at our Rotterdam branch' while open positions for Amsterdam 'a big IP project' whatever that means....
We are Vertigo Games, developers and publishers of big hit VR titles like Arizona Sunshine, The 7th Guest and the highly anticipated Metro Awakening. Our Amsterdam studio is gearing up to start development for a big IP project and we are looking to recruit a Lead Level Designer who can aid us in our mission.
With multiple AAA VR games in the works at our Rotterdam branch, we are looking to add a team member who has great affinity with the player experience and can collaborate across disciplines to make craft game-play that showcases the game's mechanics, characters and setting to make memories that stay with the player.
Another studio seemingly shut down. This time it's Pieces Interactive, developers of Magicka 2 and the Alone in the Dark reboot that launched this March, which already suffered layoffs this April.
From their website:
Pieces Interactive released over ten titles on PC, Console and Mobile since 2007, both our own concepts such as Puzzlegeddon, Fret Nice, Leviathan Warships, Robo Surf and Kill to Collect, as well as work for hire titles such as Magicka 2 and several DLCs for Magicka. Our client list includes Paradox Interactive, Koei Tecmo, Arrowhead Game Studios, Koch Media and RaceRoom Entertainment.
In 2017, Pieces Interactive were acquired by Embracer Group after working with the expansion for Titan Quest, Titan Quest: Ragnarök and third expansion for Titan Quest, Titan Quest: Atlantis.
Our last release was the reimagening of Alone in the Dark.
Embracer Group has published its financial results for Q2, reporting declines across the board, particularly in its con…
www.gamesindustry.biz
Embracer's Q2 Financial Report. A lot down, especially on the Console side. Net sales: SEK 8.55 billion ($774 million), down 21% year-on-year, including:
PC/console games: SEK 2.12 billion ($192 million), down 46% year-on-year
Mobile games: SEK 1.35 billion ($122 million), down 8% year-on-year
Net loss: SEK 390 million ($35 million, compared to net loss of SEK 562 million / $51 million during the same period last year)
Embracer is also divesting Easybrain to Miniclip for $1.2 billion
INSIDE INFORMATION: Embracer Group AB (“Embracer”) has today entered into an agreement to divest the operative group Easybrain to Miniclip, for a consideration of USD 1.2 billion (approximately SEK 12.9 billion) on a cash and debt free basis. The transaction has a strong strategic and financial...
embracer.com
Miniclip owns Subway Surfers, 8 Ball Pool and Agar.io
There isn't much good data available about how video games actually perform. Sales info is scarce. Budgets seldom seen So it's remarkable that Embracer Group regularly shows this (largely) anonymized chart that discloses its games' return on investment (red line is break even)
bsky.app
Didn't realize Embracer did a profitability chart for most of their games. Interesting to see this information.
Also should mention that the Easybrain sale would cover almost all of Embracer's debt at this point (discounting the ~$1 billion debt remaining on Asmodee since they spun them off) leaving the group with only about $50 million of debt remaining. That should probably end the mass layoff cycle that they were going through.
Didn't realize Embracer did a profitability chart for most of their games. Interesting to see this information.
Also should mention that the Easybrain sale would cover almost all of Embracer's debt at this point (discounting the ~$1 billion debt remaining on Asmodee since they spun them off) leaving the group with only about $50 million of debt remaining. That should probably end the mass layoff cycle that they were going through.
Frontier Development did a similar thing on its FY24 FINANCIAL RESULTS (slides 4 & 5), in part I believe to explain/justify its decision to reduce its overall line up. Always have to think to ourselves, why does a (publicly listed) company release information, how they present it & for what purpose. In this case, Embracer Group has always sought to justify its acquisition spree on the grounds that it builds a large back catalogue of titles with an average well above breakeven. Of course as we all know, this doesn't account for the debt from buying said IP & studios.
As with my post back in March after the sale of Saber Interactive, worth reviewing the press release for the purchase of EasyBrain & compare the amounts within against the divestment.
Easybrain estimates calendar year 2020 revenues of USD 210 million (2019: USD 111 million) and an EBIT of approximately USD 70 million (2019: USD 18 million).
The day one purchase price amounts to USD 640 million on a cash and debt free basis and is paid in newly issued Embracer B shares. Shares corresponding to USD 130 million are issued to the sellers at closing without restrictions, USD 220 million subject to six-month lock-up, USD 145 million subject to one-year lock up and USD 145 million subject to two-year lock up.
Subject to fulfilment of agreed financial targets during a six-year period an additional consideration of a maximum of USD 125 million will be paid in newly issued Embracer B shares.
The total maximum consideration amount to USD 765 million on a cash and debt free basis.
To earn the maximum consideration the accumulated EBIT during a six-year period has to exceed USD 600 million.
Based on the figures in the press release for its sale, I'd expect most if not all of those targets for additional cash plus shares would've been met. Still as @Astrogamer notes, it'd close to or slightly below the $1.2 billion that Embracer Group is looking to raise from the sale. As for how Easybrain stands to gain from the divestment, we can get the answer straight from the source!
1. Miniclip is a reputable mobile game development company with a substantial advertising revenue stream which aligns great with Easybrain business.
2. Deal will allow Easybrain to avoid an intra-group reorganization as part of the planned spin off from Embracer of Coffee Stain & Friends.
3. Easybrain has found a new home that will enable it to continue to operate with minimal interference, maintaining its culture, methodologies, incentives, values and autonomy.
4. Joining forces with Miniclip positions Easybrain to better navigate industry challenges with enhanced support, synergies and resources.
Business synergy speak aside, second point sounds like the main factor. As for Miniclip, it's a no Easybrainer as net sales will match the amount paid within 4-5 years based on FY3/24.
Embracer will transform from a net debt position of SEK 13.2 billion as of Q2 FY 2024/25 to approximately SEK 0.5 billion on a pro forma basis.
Excluding the debt related to the ringfenced Asmodee structure, amounting to approximately SEK 9.4 billion, pro forma net cash for the remaining Embracer Group amounts to approximately SEK 8.9 billion.
During FY 23/24 (ending March 2024), Easybrain contributed with net sales of SEK 3,395 million, Adjusted EBIT of SEK 1,392 million, and Adjusted EBITDAC of SEK 1,382 million. User acquisition costs amounted to SEK 1,524 million, representing 45 percent of net sales.
“Coffee Stain & Friends”, a diverse gaming entity with a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile, with a high degree of recurring revenues.
Net Sales of SEK 10.9 billion, Adjusted EBIT of SEK 2.8 billion on a pro forma basis as per LTM December 2023.
“Coffee Stain & Friends”
“Coffee Stain & Friends” is intended to consist of leading publishers and developers focused on a variety of games for PC, console and mobile, including community-driven free-to-play games, LiveOps games, and indie/AA games.
As a standalone company, “Coffee Stain & Friends” will be able to better showcase its high margin profile and strong cash flow profile coupled with an enhanced ability to resume and allocate resources towards opportunities to maximize the long-term value creation.
The entity will operate under two distinct segments: Premium and Free-to-play. Premium PC/console operations will include among other Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, as well as THQ Nordic and Amplifier Game Invest. Intellectual properties include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, Valheim[4], as well as more than 200 other IPs. Free-to-play operations will include Easybrain, Deca, CrazyLabs and Cryptic. Intellectual properties include Sudoku.com, Blockudoku, Jigsaw Puzzle and many other IPs. Key published free-to-play games based on licensed IPs include Star Trek Online and D&D Neverwinter Online.
Without Easybrain it'd be interesting to know how these figures change & how viable it'll be as a standalone publicly listed company without them. Miniclip wouldn't have ponied up the cash unless it felt there was real value to its studios & IP. Alongside the sale we got a new download milestone, so will end by reviewing milestones from approx. time of acquisition to sale.
Easybrain's team is constantly growing, and we're approaching the end of the year with more than 260 employees! Check out the new job opportunities on our Careers page.
By the end of 2023, the cumulative downloads of our titles have surpassed an impressive 1.7 billion, and we are confidently steering towards the grand 2 billion milestone!
At the heart of our results are the people who make them happen. In 2023, the mobile sector witnessed a downturn in revenue for the first time in recent years. Despite the complex market landscape, the Easybrain team has steadily expanded, reaching 340 members.
Growing not just in size but also in presence, the company now has one more significant location — Poland. Since the start of 2023, more than 50 talents have joined it, driving the dynamic development of our team. We are actively hiring at the moment! All open positions can be explored through the link.
Kundratitz will be replaced by Embracer deputy CEO Phil Rogers.
www.gamedeveloper.com
The cofounder and CEO of Plaion (formerly Koch Media), Klemens Kundratitz is stepping down. The new CEO is Phil Rogers, who runs the Crystal Dynamics Eidos division and had ran the division since it was Eidos in 2008. It's just a move within Middle-Earth and Friends but it's an interesting power consolidation for the branch of Embracer.
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