Well-known developer studios Volition and Gearbox are the latest casualties as Embracer Group continues its restructuring program. Learn more about the reason for restructuring, studios affected, and efforts to help employees.
Embracer Group Restructures Company
Resorts to Layoffs and Closing Studios
Embracer Group, a prominent player in the gaming industry, recently made significant waves with a restructuring program that led to several studios' closures. The shake-up came after a $2 billion investment deal with Savvy Games Group, the gaming arm of Saudi Arabia's Public Investment Fund.
Among the casualties of this restructuring is Volition, the renowned developer responsible for beloved franchises like Red Faction and Saints Row.
On August 31, 2023, the gaming community received the sobering news of Volition's closure through a statement posted on the studio's LinkedIn account. The announcement revealed that the decision to shut down Volition was a direct consequence of Embracer's restructuring efforts following the collapse of the substantial investment deal.
Volition, founded in 1993, boasts a rich legacy of crafting popular video games, including the iconic Red Faction series, the anarchic Saints Row franchise, and the fantasy-themed Summoner series. Over the years, the studio changed from THQ's ownership in 2000 to Deep Silver after THQ's bankruptcy in 2017.
In 2022, Volition made headlines with the release of a reboot for the Saints Row franchise, but the game was received with mixed reviews. Critics cited a lack of innovation and a departure from the series' usual tone as areas of concern.
Despite the closure, Volition expressed its commitment to assisting affected employees in their job search endeavors while promising continued support for its devoted fan base.
Gearbox Publishing Layoffs
Meanwhile, Gearbox Publishing, another subsidiary of Embracer Group, has also faced its share of challenges, including the reported layoffs of numerous employees as per former staff members' LinkedIn profiles. These layoffs occurred intermittently over the summer, extending into recent weeks. One employee of many posted on their LinkedIn that they were part of the layoffs at Gearbox Publishing as one of the most recent hires.
Gearbox Publishing initially showed promise by publishing games from third-party studios back in 2015 but has seen a string of layoffs stemming from financial pressures related to the same reported $2 billion deal with Savvy Games that ultimately fell through in May.
The closure of Volition and the layoffs at Gearbox Publishing highlight the challenges facing the video game industry giant. While the industry itself has experienced rapid growth in recent years, it has simultaneously witnessed consolidation and escalating costs. As a result, several publishers need to make difficult decisions aimed at curbing expenses.
Source:
Volition LinkedIn Announcement
