Embracer Group confirms yet another round of foreclosures and layoffs, this time affecting TimeSplitters developer Free Radical and Fishlabs. Read on to learn more details about the situation and the video game industry layoffs trend of 2023.
Embracer Group Continues Its “Comprehensive Restructuring Program”
Following a grim trend manifesting in the video game industry in 2023, Embracer Group will be seeing to the foreclosure and downsizing of its constituent studios as part of its "Comprehensive Restructuring Program". The program, which was announced earlier this year in May, followed the collapse of a 2-billion dollar deal and served to recoup development costs for their major titles.
Free Radical Design Set to Close By December 2023
Free Radical Design, the famed developer of the TimeSplitters series, is the latest of Embracer Group’s studios to be set for foreclosure. The studio - which was resurrected in 2021 for the revival of the TimeSplitter franchise - is currently undergoing a 30-day consultation process, as per UK employment law.
Although Embracer is yet to publicly confirm Free Radical’s current state, sources confirmed with VGC that Embracer CEO Lars Wingefors has now acknowledged in a company email that the company could be closed on December 11, following the completion of a consultation process.
"As we move through the consultation process and face the potential closure of Free Radical Design on 11 December 2023, I want to express my gratitude for your commitment and the remarkable work you’ve done and still keep doing," he wrote. "This is a challenging time for all of us but especially for you, and our focus is to support you as much as we can during this transition."
All hope isn’t lost, however, as Free Radical Design could still be saved if a third party shows interest in acquiring it from Embracer. That much hasn’t been confirmed, however, and as it is now, we may be looking at yet another studio falling to the industry’s apparent decline.
Layoffs Hit Chorus Developer Fishlabs
Plaion, another company owned by Embracer Group and parent company to Fishlabs, confirmed that a "restructuring" was taking place, one set to impact around 50 positions.
Said layoffs seem to be a result of Embracer no longer moving forward with the studio’s main project. Fishlabs, who released 2021’s Chorus, also suffered a handful of layoffs in September following the cancellation of a smaller internal project, leaving the studio with 95 employees - a number we’ll be seeing cut in half after the restructuring.
"Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio's unannounced project (also referred to as ‘Project Black’) has made this step unavoidable," a spokesperson for Plaion quoted. "The remaining team will continue to work on the existing co-development projects in partnership with other Plaion and Embracer Group studios."
Lars Janssen, an executive working at Plaion, described the restructuring as a "tough moment". In a statement, Janssen said that "each individual at our Fishlabs studio has been more than just a team member; they've been a vital part of our creative journey, bringing not only their skills but also their passion and dedication to every project. We're truly thankful for the energy and heart they've invested in our collective endeavors. This painful decision is a reflection of the broader challenges in the gaming industry, not the incredible talents or efforts of our team"
Embracer Group’s Other Layoffs for 2023
Free Radical Design and Fishlabs are far from being the only studios affected by Embracer Group’s restructuring program, as larger studios like Crystal Dynamics, Zen Studios, and BeamDog also suffered layoffs earlier this year. Just earlier this month, Embracer saw the downsizing of more than 900 employees as part of the same program.
Embracer also shut down Studio Onoma (formerly Square Enix Montreal) and Volition, while Borderlands developer Gearbox is now reportedly up for sale. Considering the wake of their failed deal in May, it seems the Embracer Group is doing what it can to make amends. Only time will tell to what extent these layoffs and closures will continue to that end.
Continued Layoffs in The Shadow of 2023’s Industry Trend
Embracer Group seems to be the latest torchbearer for a worrying trend plaguing the video game industry in 2023. Widespread layoffs are the new norm, as larger names like Epic Games, Ascendant Studios, and even Ubisoft fell into the same decision.
We could very well be witnessing the slow decline of the video game industry as more and more jobs are lost to cut costs. This could also just be a temporary recession that could end within the next year. Until this trend ceases, however, it’s more likely that the latter sentiment is true.
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VGC Embracer CEO confirms TimeSplitters studio faces closure before Christmas
