Embracer Group, the company that has gobbled up developers and IPs over the past few years, is reportedly looking at selling off Borderlands developer Gearbox Entertainment. The Swedish firm's fortunes have taken a turn for the worse over the past few months, so despite only purchasing the publisher just over two years ago, it could be the subject of a sale having received interest from third parties.
That's according to Reuters (via Market Screener), citing three sources familiar with the situation. It's said a sale is only a possibility at this stage, with no concrete plans set yet. A third-party purchase would allow the Embracer Group to "shore up its finances" as it goes for a company-wide restructuring, which began in June. This has led to the closure of certain studios as well as employee layoffs.
The first studio to fall was Campfire Cabal, which was never given the chance to even release a game, and then it was the turn of Saints Row developer Volition. The Embracer Group has had to heavily scale back its efforts after a $2 billion agreement with another company fell through, speculated to be Savvy Games, which is funded by the Crown Prince of Saudi Arabia. PS5 console exclusive Star Wars: The Knights of the Old Republic Remake is also in development at the Embracer Group-owned team Saber Interactive, but it's been hit with a lot of problems during production. Whether it will even make it to market at this point remains very much up in the air.
[source marketscreener.com]
Comments 57
Clearly Embracer's strategy of hoarding IP and then becoming acquired isn't working. I wonder how much money has been lost.
Better someone snatch it up on discount before they close it down. Maybe TakeTwo wants it back?
@NinjaNicky to be fair the series feel kind of washed off. And the tiny Tina wonderland's attempt to bring fresh breeze was a hit and miss.
I never liked their ips so ... probably Sony already bought them lol
They have been making the same game now for about 15 years and really not much else. They aren't worth very much any longer.
How one company can cause so much damage through greed is quite astonishing really.
Another developer that's going to be gobbled up my Microsoft, will be a shame as well as I love the borderlands series.
Ideally someone like Take Two or Tencent can get them and help them back on their feet with borderlands 4.
@Jey887 they basically mugged amazon with tomb raider, the ip isn't that relevant anymore and they got too much money for it
@Anke I think they wanted to do what Tencent was doing but didn't have the Chinese government supporting them as a spy agency.
Clearly a case of Embracer attempting to expand way too quickly by buying up many more studios and IPs than Microsoft ever have. The difference ultimately being the outlay value.
Personally I'm glad to see Embracer having to tighten their belt. If it means that they will stop hoarding beloved IPs and doing nothing with them, then I'm all for it. Better that the likes of Sony or Microsoft buy them. At least that way we know that the Studios will likely be looked after, and the IPs will see the light of day at some point. Even if it is Microsoft, we do at least know that under their current management they will do something positive with the IP. Even an Xbox console and PC exclusive is better than not seeing these titles ever again...
@UltimateOtaku91 duuuuude. Microsoft isn't going to be buying anyone for a long time. They have every government watching everything they do right now. They wouldn't waste that on a company in steep decline.
Besides Tencent (just cause) and maybe Microsoft so they can say they are the home of the fps genre I don't see who would else be interested.
They haven't been looked at in high regard since Borderlands 2 and it seems that's all they're able to make. Hope they do eventually find a home before the studio is closed for good
So what you are saying is that you would rather these games never see any further instalments, and these Studios shut down, @UltimateOtaku91, than Microsoft buy them, yes? If Microsoft were to buy the company, they would at least be on the Xbox and the PC.
My understanding is that you have an Xbox, so, as much as you love to come on here and trash-talk Microsoft and the Xbox, you would still be able to play Borderlands, or anything else the Studio might make under Microsoft's management.
Or are you simply saying that it's only okay if Sony buys the games and keeps them on the PlayStation?
Oof. I mean we all saw this coming but yikes.
I hope Gearbox ends up okay in the end. I still love me some Borderlands on occasion.
Borderlands is owned by 2K, right? So even if Gearbox becomes a first-party studio that wouldn't make Borderlands an exclusive series but I could be wrong.
Just anyone except Microsoft or Tencent (for different reasons obviously)
This has to be one of the worst ran companies in the business. If i was under this publishers umbrella and I had a way out I'd take it right now before they completely implode.
So that would basically leave Deep Silver, Crystal Dynamic and Eidos as their only teams with AAA track records.
@Cashews Thats a solid reasoning you have to look at the bigger picture one IP isn't really the best reason to buy them even if it's Borderlands.
@NinjaNicky buy both consoles never have to worry about exclusives
@Fiendish-Beaver I don't have an xbox any more as I sold it a few months ago hence why I don't bother going to purexbox anymore. Also I said in my comment that i would like Take Two or Tencent to help them financially and get Borderlands 4 in development, I actually think Take Two would be a perfect for for them. But yes I would rather anyone buy them other than Microsoft so that playstation players can still play future games and so that playstation still has some western shooters before theyre all gone.
And if you're talking about timed exclusives then both dabble in those, infact Microsoft have had more timed exclusives than sony this gen so far and they also pay for subscription exclusivity for some games like atomic heart, Stalker, Wo Long, Persona etc
Can I suggest them to change their name to Death Embrace Group?
Embracer need to be driven from the industry and the execs blacklisted. These are studios with employees that rely on a steady wage. They canโt just play fast and loose with peopleโs livelihoods.
Embracer really bought a whole lot of gaming companies despite clearly having absolutely zero idea how to use them huh
@NinjaNicky I honestly just couldn't care less for Borderlands after 3. Gearbox ruined both the characters and the humor of the series. Not to mention going soft with the humor.
Removed - disrespecting others
Sony..... hear me out. All I ask is you don't let Ms buy them. I'm completely fine if borderlands stays multi platform.
Embracer showing everyone what not to do after buying up a bunch of devs.
@NinjaNicky IMHO, tiny tina wonderlands base game was excellent. Game play, mechanics, guns. Etc.... great damn game. A bit short, and the support after release was pitiful.
@NinjaNicky Right now i would prefer MS owning them then Embracer.
Everyone keeps bringing up Microsoft. I think Sony would be a good fit for Gearbox.
@NinjaNicky BL2.was great, but honestly TT Wonderlands was fantastic, and these changes and buyouts makes me worry there will be no part 2๐
@Anke do you mean Microsoft ๐
@Toot1st both UI and controller is so bad on Xbox.
Cant play longer period with Xbox controller.
@number1024 Starfield isn't for everyone I guess? You either love it or hate it. I guess Bethesda is to Xbox what Square Enix is to PlayStation. I look at both Redfall, Starfields many flaws along with there PlayStation exclusive deals as evidence that Bethesda was in financial trouble before Microsoft purchased them.
I'd still rather see studios from Embracer purchased than closed down? specially if someone like Sony comes along to invest in them.
Okay, @UltimateOtaku91, so you have sold your Xbox and so your allegiance is with Sony, pure and simple, I get that now. However, your comment referred to Microsoft 'gobbling them up'. So what you did was take a swipe at Microsoft without any evidence whatsoever that they were in any way involved in any potential acquisition of Gearbox. You just cannot help yourself, can you?
I personally think it is a franchise that is better in the hands of a developer that will keep it multi-platform. However, I would take it in the exclusive hands of either PlayStation or Xbox, rather than disappearing completely. The Studio's survival is more important than anything. Whether you like Microsoft or not, them keeping the franchise alive is better than us never seeing another Borderlands game at all...
under the new umbrella and managaement, has embracer released a single good game? there was some news a while ago that they sold the rights of tomb raider to amazon but the details were left very vague so nobody knows if they merely sold the movie rights or the entire IP, including the game rights... in either case, tomb raider looks to be dead now since neither publisher is capable of putting out a decent game or has a clue as to how the gaming industry actually works.
as for gearbox? couldn't care less what happens to them. they are a one trick pony that failed to innovate.
@GymratAmarillo Uff... i dunno. They are not a consistent quality developer and then there's Randy pritchford. I don't think they are an attractive offer.
@UltimateOtaku91 You don't want the ccp(Chinese company's are owned at 50% or more by the ccp) to own them.
I think this would be a fair acquisition for Sony. They need a shooter developer who can adequate make solid shooter. I am pretty sure they can revive Killzone or new IP.
Oh god I can hear Phil counting how many pennies heโs got left
@CieloAzure theyโve already got the best in the business lol bungie
Embracer Group is clearly in over their head.
In June they revealed they have over 220 games currently in development, which is insane.
Think they will go independent or get some sort of investment from Tencent or someone like that. Can't see either Sony or Microsoft going for them whilst Randy is still there.
Doubt Sony would want them. What Ip's do they own exactly, off the top of my head I can only think of Borderlands, Duke Nukem and Battleborn. Two failed games and one IP that's pretty much exhausted at this point. Saying that I wouldn't mind another Duke Nukem but this time made by a competent studio, I just think his kind off humour would get frowned upon these days and the review scores would suffer as a result so there's no chance Sony would make another Duke game. Hail to the king baby.
@cragis0001 I donโt think Sony would be interested. Iโm assuming the sale of Gearbox Entertainment also mean the sale of the publishing arm, not just the studio. So unless Sony planning on keeping Gearbox Entertainment as an independent entity like Bungieโฆ Theyโll have layoff the publishing side.
Plus, Iโm sure Sony still have a terrible taste in their month left over from working gearbox on Godfall.
@MrMagic They own brother in Arms and Homeworld as wellโฆ. They also own Cryptic studios who own a ton of MMOs.
Embracer: It's a bargain guys,we'll even throw in Randy's usb drive!๐
Sega: Just give us Randy,we're still looking for the Aliens dev funds!๐
@number1024 Microsoft helped Bethesda enter the console market with the original Xbox & were close until the start of this current gen. Todd Howard said when Fallout 76 flopped he went straight to Phil Spencer for advice. If I remember correctly he passed him onto Rare who managed to make Sea of Thieves into a success. Square helped make the PS1 a success & have been close to Sony ever since.
I see it as more than just Microsoft buying Bethesda because of Sony was sniffing about. If Microsoft hadn't purchased them it would be a case of history repeating itself as Microsoft was close to Bioware before EA swooped in. It did hurt them. But probably for the best at the time.
@AverageGamer I don't know. Sony seems to be looking for experience in certain types of games which Gearbox has. The publishing part could be spun into something else to help get more games onto PlayStation I guess. But only time will tell I guess.
@UltimateOtaku91
Ideally someone like Take Two or Tencent can get them and help them back on their feet with borderlands 4.
I am constantly surprised that folks would want Tencent to gobble up more of the gaming industry.
Look at how much of the gaming space they already own.
You do know that this a communist regime that wants control of things that you interact with online?
Would MUCH rather have Activision or other companies take over these folks. We do not need more Saudi or Chinese money taking control of our hobby.
Gearbox has been going downhill for years. Embracer is where devs go to die. It was inevitable.
@NinjaNicky Yeah that would be enough for me to jump platforms. On its own, not so much, but coupled with Sony's decreasing appeal for me and poor choices with development and services I'm already losing my patience with them. Been fifteen years since I got my first Sony console so I don't take bailing lightly.
@cragis0001 As a playstation long hauler, I'm glad someone else is aware of this. Bethesda was always close with Microsoft. Hell, their games have notoriously been worse experiences on playstation. Bethesda went home, Blizzard as well. These are companies that always fared better on Microsoft ecosystems, so being acquired formally didn't surprise me. Sony has actively been touting being the best place to play while doing everything they can to effectively do nothing. It's fine to not like xbox, but Sony is just as bad if not worse given the fact that our platform has basically been getting shafted by a CEO who understands nothing about gaming.
@DeathlySW I agree 100%.
@number1024 if the whole out spending of Sony was written by Phil Spencer then I'd worry...but it wasn't & was confirmed under oath that it was never an option. I'd also bet Sony was aware that Microsoft was wanting Bungie back as well.
@Neverwild i am the opposite much prefer the xbox controller and xbox ui i find it so hard navigating the sony store. i only use my ps5 for there exclusives though
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