Embracer Group - How Acquisition Spree Leads To A Disaster

Gearbox Software known for Borderlands franchise is reportedly up for sale even though it was acquired by Embracer Group only 2 years ago. Embracer Group is a large company that owns many development and publishing studios including Aspyr, Saber Interactive, THQ Nordic, Deep Silver and some studios previously owned by Square Enix. In this video I discuss the problems that Embracer Group presents including closure of Volition Games, creators of Red Faction and Saints Row.
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#gearbox #embracergroup #videogames #gaming

[@themightycrixus1131]

A single group controlling pretty much all of gaming? NO THANKS. There will be no innovation and no competition. Kinda like the whole Madden problem.

[@Rodzyniastyyyy]

Things are not looking that well on the engine side as well. New Unity pricing model is so retarded (devs will be charged a flat rate based on how many times their game is installed, no matter if that install is attached to a sale), that it paves the way for Unreal monopoly.

[@themightycrixus1131]

@@Rodzyniastyyyy dang man that is a shame

[@otogigamer]

Only if the company has money and is flexible with allowing companies to make what they want

[@Sulmor85]

I can't imagine a Randy Pitchford's quote that ages well

[@ElavesGames]

That's fair enough :D

[@Pavel-Geleznov]

Embracer Group crumbles as any empire, because it's become too big

[@nightsprings6920]

Gearbox for over $1 billion wow what an insanely high price tag. No way they are worth more than $300 mill (CD & Edios with Tomb raider etc)

[@ORLY911]

and its probably declining, they havent been doing as well as they used to. Battleborn, BL3 and ESPECIALLY its DLC's, New Tales from the Borderlands and tiny tinas didnt do very well especially compared to BL2.

[@Quagula]

I think its cheap actually.

[@Ragna25]

Was like 350m with up to 1.4b based on performance over years

[@drunkrudetat2d]

Wildcard studios is next lol

[@matthiasvolz5226]

Stock is falling, 1 month after your Video i can See Desaster at Embracer share. Its dropping. Question: will they recover?

[@ElavesGames]

Who knows. In recent months it's failure after failure, they need a win, then maybe they can get back on track. But it doesn't seem like people that are running this company know what they're doing. They hold lots of amazing IPs but doesn't do anything with them, it's bizarre to me

[@ThousandairesClub]

*I don't like the look of any of this and I think its time to bail out on console gaming 😬 Mobile VR is looking real good right about now* 😎

[@TheLotw]

Well if any smaller dev sells their soul to a bigger group deserves the failure that will happen.

[@jasonkoroma4323]

Exactly!

[@hellishcyberdemon7112]

Im not sure why people dont get this

[@aouyiu]

It's more nuaced than that, it depends on the studio. Each one acquired by a publisher has all sorts of different reasons for doing it beyond just money.

[@aouyiu]

@@hellishcyberdemon7112 Maybe because it's more nuanced than that? Bethesda Game Studio, Activision, and Blizzard aren't anywhere near "small studios" yet they've been acquired by Microsoft. Ask yourself why.

[@TheLotw]

@@aouyiu No their goal it to make money, otherwise PAY THEIR EMPLOYEES MORE AND THEIR CEOS LESS.

[@normansteinmetz643]

I'm still long in Embracer stock, but just because I invested a few months ago and my entry price is very low. Selling Gearbox might be a good idea, it would bring down the debt level and they can focus on other IPs