Embracer Brass “Confident,” Tried to “Save as Many Jobs as they Could” Insists Saber Boss

The collapse of Embracer Group has been a significant event in the past year, with the company’s failure to secure a $2 billion investment resulting in the sale or closure of several major studios and the loss of 1,400 employees. Among the studios that were let go was Saber Interactive, which was acquired by Beacon Interactive for $247 million, much less than the original price of $525 million paid by Embracer. Despite this, Saber’s founder Matthew Karch remains positive about Embracer in a recent interview with GamesIndustry.biz, praising the company despite their previous business relationship.

Karch, a former board member of Embracer, sheds more light on the company’s downfall. It is widely agreed upon that Embracer’s rapid rate of acquisitions, with each division making independent purchases, made it difficult to have a comprehensive understanding of the company’s operations. However, what ultimately led to Embracer’s demise was their acquisition of French tabletop game publisher Asmodee for $2.75 billion in 2022. This move plunged Embracer into debt and their hopes of clearing it with a $2 billion investment from Saudi Arabia’s Savvy Games Group were dashed when the deal fell through.

Despite this, Karch maintains that Embracer boss Lars Wingefors and other company executives made every effort to reduce the number of layoffs.

Despite the difficult decision to terminate studios, no one has displayed a stronger sense of fairness and reasonableness than Lars [Wingefors]. The process was incredibly challenging for us and has taken a toll, but I firmly believe that Embracer made every effort to preserve as many jobs as possible.

Take a glance at Gearbox. Did Gearbox recently sell? Were the employees who worked at the company still there even after the announcement? Lars made every effort to retain his staff and didn’t want to lay off anyone. Therefore, I believe he unfairly receives criticism.

Moving ahead, Karch believes that Embracer still has a strong portfolio of intellectual property and studios, and he has noticed a newfound confidence in Wingefors that he has not seen in a while. Therefore, he remains optimistic about the company’s future and would not hesitate to support them.

However, I have faith in Lars at the moment. He seems to have everything under control. It’s been a while since I’ve heard him this sure of himself and I believe they have downsized the company to a manageable size – still significant, but manageable. Additionally, I am aware of some exciting projects that have yet to be announced, and I am confident that they will be well received. Therefore, I am optimistic about their future.

Despite the unfavorable appearance of the situation with Embracer, it is intriguing to gain an inside perspective. Is it possible for Embracer to make a comeback? Perhaps, as long as they are willing to reflect on their previous errors and learn from them.

Do you have any positive thoughts about Embracer’s prospects for the future? Or do you believe it will continue to decline steadily from here?