Embracer Group, a prominent name in the gaming industry, is making headlines again with its latest round of strategic decisions, including game cancellations and layoffs. This move, reported by Bloomberg, signifies a major shift in the company’s direction, impacting both its upcoming game lineup and its workforce.
The Unexpected Cancellation of Deus Ex Game
In a surprising turn of events, Embracer Group has decided to cancel an upcoming game from the Deus Ex series, which was being developed by Eidos Montreal. This anticipated game was slated to enter production this year, but details about it remained scarce. Instead of continuing with the Deus Ex project, Eidos Montreal will now focus on an original franchise, marking a significant pivot in the studio’s focus.
— Eidos-Montréal (@EidosMontreal) January 29, 2024
“Bloomberg reports that Embracer has elected to cancel an upcoming Deus Ex game from Eidos Montreal.”
The cancellation of this game from the renowned Deus Ex franchise, which saw its last main series entry in 2016 with “Deus Ex: Mankind Divided,” has certainly raised eyebrows in the gaming community. The news has even prompted a reaction from Elias Toufexis, the voice actor for the main character Adam Jensen, who expressed on social media, “I told you guys it wasn’t happening.”
Layoffs as Part of Restructuring
In conjunction with the game’s cancellation, Embracer Group is also moving forward with layoffs. Eidos Montreal confirmed that 97 employees from various disciplines are being let go. This decision is influenced by multiple factors, including the global economic context and general conditions in the video game industry, along with Embracer’s own restructuring plans.
“Eidos Montreal is cutting 97 people… citing the global economic context and Embracer’s previously announced restructuring plan.”
This move comes after Embracer’s acquisition of the Deus Ex franchise in 2022 from Square Enix, a deal that also included other major titles like Tomb Raider and Legacy of Kain.
Embracer Group’s Ongoing Strategic Changes
The recent announcements are part of a broader strategy by Embracer Group. In June 2023, Embracer revealed plans to cancel games, reduce staff numbers, and close certain studios following the loss of a significant $2 billion deal. This deal, which was only verbally agreed upon, later turned out to be with Saudi Arabia—a country whose human rights stance has previously drawn criticism, especially in the context of Embracer accepting a $1 billion investment from it.
“Embracer announced plans to cancel games, lay off staff, and close studios in June 2023 in the wake of losing a $2 billion deal at the 11th hour.”
The impact of Embracer’s strategic decisions has been widespread, affecting various subsidiaries, including the closure of Saints Row studio Volition and the impending shutdown of TimeSplitters developer Free Radical. Layoffs have also been implemented at other studios like Crystal Dynamics, Gearbox, and Beamdog.
If they had been working on a #DeusEx for two years, and they still hadn’t contacted me, there’s a good chance it wasn’t a Jensen story anyway.
I’m more pissed for all the people getting laid off. This industry is fucked with this stuff.
— ᴇʟɪᴀꜱ ᴛᴏᴜꜰᴇxɪꜱ 🖖 (@EliasToufexis) January 29, 2024
Industry-Wide Impact
Embracer Group’s actions reflect a broader trend in the gaming industry, where other major players like Microsoft and Riot Games have also been reducing their workforce. Microsoft recently announced the cut of 1,900 positions from its gaming team, and Riot Games, the developer behind “League of Legends,” has also reduced its staff significantly.
The shifts within Embracer Group and the wider industry highlight the challenges and changes facing the gaming world, emphasizing the volatile nature of this dynamic sector. As the industry continues to evolve, the focus on strategic realignments and cost-cutting measures seems to be a growing trend among major gaming companies.
