Embracer Group: More "Tough Decisions" To Come As Crystal Dynamics Suffers Layoffs

Microsoft buys Nintendo, lays off half the employees.

This is why you should never want consolidation.

I hope Lara gets out of this mess ok.

Tough choices like "much money tomorrow, many people out... Or fewer people out and less money tomorrow but durable business?"

"Who are we kidding, you had me at much money."

The Embracer business plan:
1. Buy all the game studios
2. ???
3. Profit!

You and I will never attain to this kind of bold corporate leadership.

It's like watching a 3D animated model of the sinking of the Titanic out here. Slow...painful.

These aren't tough decisions for these vultures. Those employees' livelihoods were nothing more than inconvenient numbers to them.

The thing is, if you buy five companies, you probably don't need five separate HR teams, and five finance teams, etc. So to a certain extent trimming it down can be logical and make things more efficient. After all the prize they're buying is the developers and the IP, not the admin structure.
But that ignores two key facts. One is that a bunch of people have lost their livelihoods because a bunch of wide boys with MBAs decided buying stuff with other people's money was easier than working for a living and the other is that literally nobody benefits from these sorts of acquisitions.

@iconmaster Sounds like Microsoft's plan as well. 😅

Embracer and Microsoft are not the same. Teams working for Xbox have expressed how great it has been and they have been given creative freedom on top of it. If anything, Square Enix really screwed Crystal Dynamics by implementing awful monetization in a decent Avengers game.

Who knew that acquiring half the industry was a costly idea?

@GhanaViking
The difference between the two is that Microsoft have been around for decades and knows how to play the long game. They're happy to smile and play nice for a few years because they know they'll be around to reap the benefits when the peace treaty expires.
By comparison Embracer Group are like mayflies, trying to grab everything they can and hope they grab the right stuff to come out smiling.
The new kids on the block may claim to be "embracing" other companies but Microsoft literally invented "Embrace, Extend, Extinguish".

@RenanKJ I don't think Buying COD and Crash Bandicoot creates any mystery as to how they'll make profit. Embracer is a holding company, Microsoft is a software company. The two situations aren't even remotely similar.

Disgusting. They’ve accomplished nothing as a publisher except the loss of jobs.

Bethesda put out an open invitation for the volition team to interview with them, if more layoffs happen at Crystal Dynamics, MS should DEFINITELY hire those guys.

This studio is on par with the very best in the industry in terms talent.

What about GameStop isn't this part of the group? They need to pay the store staff more to keep them and take pay from top that aren't doing matching performance that will incentives top management to do their job better.

I feel bad for anyone who thought Tomb Raider and Legacy of Kain would fare better after Square sold them off to Embracer. They're just crashing and burning so hard at this point.

It reminds me of that one part of Megamind:

"We're saved!"

"I wouldn't say that. More like...under new management."

@Woderwick

RE: Consolidation with administration teams

There could be some solutions for management but each studio under Embracer's ... embrace (?) are located in different countries, jurisdictions, and taxes. The theory make sense but in practice it would be extremely difficult without a large reorganization stemming from the top.

I bet you that didnt happen for a variety of reasons and the studios were simply asked by their overlords to pick out roles or individuals to trim.

Tomb Raider's has had it's time (and Soul Reaver: Legacy of Kain btw is vastly overrated imo); it was all very exciting with it being some of the first 3D engine 3rd person games and puzzles and all.

It's the same that has happened to stealth action games' game play; it's simply gotten old.

Ok, Tomb Raider (2013) is pretty good (if not a bit schizophrenic - Lara is a quite insecure, yet highly effective killing machine - that probably sums up that game quite well, I think).

Crystal Dynamics marketing and community team sucks. They have done more damage to their brand than good, with 80% of their messaging revolving around socio-political issues and 20% video games. You don't get to be bad at your job forever. I can understand why these people were let go, and good riddance.

@Poodlestargenerica Yeah. For starters Xbox could (or is) be a huge money sink, but MS overall still profits in the end because MS is that huge.

What an absolute ***** show all this is. Buying a load of studios just to close studios down or pay people off.

@RenanKJ i doubt every studio out there would let microsoft buy them out especially how desperate microsoft is getting ever since they admitted they lost the console wars and buying out studios is not the answer for their lack of game problems for their system.

Hope everyone lands on their feet.

@SwitchForce gamestop isnt buying studios out like microsoft is doing.

Can’t Microsoft buy Embracer group, lay off the complete board of directors, and hire the people doing the actual work?

It’ll give Microsoft tons of ip to work with.

Absolutely disgusting. Give the games industry back to people who care about games. These “acquire and write down” tactics have become a disease in the entertainment industry.

Embracer gobbled up too much too quick. Especially for the promise of more investment at the end for all their labors. Don’t agree with all this consolidation of game developers and studios.

@RiasGremory Could be wrong but maybe embracer has a stack in GameStop and if they do they could make it a worth while company to get better return to the consumer and those working the stores for them to get a return in investments.

It was always going to be like this. This was the plan.

Embracer need to change their company name to Eraser, it doesn't seem like they know how to embrace these studios, only how to erase them.

Yep, this is what happens when companies buy up IP and consolidate.

And yet Nintendo bank rolls Retro studios……..10 years after their last game and still nothing…..

The WHOLE family of organizations is suffering, and not just a particular one bc of "politics."

Also, who are they gonna sell to? Only two bigger gaming sharks are prowling the waters and circling potential meals — Microsoft and Sony.