
Saber Interactive CEO Matthew Karch has defended Embracer's controversial mass acquisition strategy, which, last we checked, had resulted in the loss of some 1,400 jobs and the cancellation of 29 unannounced games. Karch made the comments in a new interview with IGN (thanks, Eurogamer) following Saber's complicated but amicable separation from the company, which he described as being "bittersweet".
Embracer had been stockpiling studios and IP for years, which Karch compared to Pac-Man "gobbling up everything on the screen", and that the "market lost patience", which is where the company ultimately ran into trouble. Despite that, Karch staunchly stands by the personal character of Embracer CEO Lars Wingefors: "He loves IP. He loves games. He loves game developers.... he's just a good human being, and he cares about his people."
Embracer earned its current reputation by acquiring too much too quickly and playing fast-and-loose with the livelihoods of thousands. Karch acknowledges this ("I was walking around GDC getting congratulated by people and having people telling me that Embracer is the evil empire") but offers an alternative viewpoint.
"You could state that a lot of the jobs that were lost were jobs that wouldn't have otherwise been created. Some of the studios that we're taking with us would never have been able to grow the way they've grown. No way. We've created a lot of jobs, and they may have, especially in this market downturn, been out of business in any event because capital has just dried up, not just at Embracer but everywhere. There was a long period of time when nobody was investing at all."
Karch admits that Wingefors may indeed count naivety as a fault, but there is still much to admire about the man: "I think you can blame Lars for maybe being a little bit naive that this gravy train would just continue. But I think now you could admire them for making tough decisions and doing whatever they can to preserve as much of what they've built as they can in a fair and equitable way. I think some people saw those acquisitions and were annoyed by Embracer when they were acquiring. I remember a lot of negative comments about them gobbling everything up. And so now they're a little bit gleeful, which I don't think is entirely equitable. But give Lars a break or have somebody give him a break. Tell the world that I said they need to give this guy a break."
What do you think of Karch's comments and Wingefor's decisions? Let us know in the comments section below.
[source ign.com, via eurogamer.net]
Comments 22
He deserves a break. A limit break.
Yeah ur not really supposed to be naive when handling ridiculous amounts of money or thousands of peoples jobs 🙄
Nothing will happen until he loses the wrong bigwig an awful lot of money. We can get annoyed about him running roughshod over people’s livelihoods but the richest people on the planet do that and get away with it. He’ll inexplicably turn up in court over tax or something if the investors start losing money.
Someone on the development team of Space Marine 2 needs to sneak a tyranid called Lars into the game..
Absolutely ridiculous. Hundreds of layoffs, studio closures like Free Radical; losing Timesplitters a second time really hurts. I'd love to give Lars a break; let's start with his nose. 👃🤛
I half agree. It's clear from his history that Lars actually genuinely loves games and is in this business for all the right reasons . Unfortunately he's also bad at business and has gone bankrupt every single time.
As an individual it's hard to dislike a guy that really goes all in on games because games. But he's not that good at it, and I really blame the morons that handed billions of dollars to someone that already went bankrupt multiple times in the same business thinking it would do differently.
"A good human being" who's entire business strategy revolved around taking Saudi blood money.
If funding helped studios grow above their means, and ultimately resulted in the need to lay off over a thousand people, the blame still lies squarely on the management that allowed them to grow above their means.
He may be ‘a nice guy’, but I’m sure a lot of people that lost jobs, projects they were excited about, feel stressed and insecure in their jobs daily, were nice guys too.
I wouldn’t give the CEO a break, but to be fair the blame can be shared around: The CEO, the board, shareholders etc. are all equally to blame.
Exactly as I said yesterday, lots of jobs were created during the pandemic boom. Now they have to be shed as the market ebbs and flows. It sucks that people are losing their jobs, I’ve been there myself, but would they have preferred that their jobs had never been created? I don’t think so.
The real problem I had with the whole situation is the industry consolidation and all the myriad problems that entails. But we can’t really blame him for doing his job and trying to create a competitive advantage that way.
The rich telling the poors to go easy on other rich, they’re actually good guys. Same type of thinking that had so many criminals get away with it after the 2008 collapse.
Layoffs suck for everybody. But there are businesses that have had to fire thousands. In Denmark the windmill industry have had to fire thousands over the years. If you run a business that ain't doin' too hot, you gotta cut costs. Either that or close shop for good
@thefourfoldroot1 There would have been other jobs. His reasoning only really works if you assume they would have been unemployed the whole time without these jobs, but there’s nothing to say they would. A lot of devs apply for projects associated with games they love too, so there could be a bunch that could have pursued other opportunities but chose this one because of the IP or history.
Losing/leaving jobs isn’t inherently bad, but this has been a result of a lack of planning and forethought. There are people who should be held responsible for creating a situation that didn’t need to happen. It wasn’t destiny..
@ShadowofSparta
Well, it is pretty obvious the industry was supporting more jobs in the bubble than it could long term, that’s why loads of people are losing their jobs industry wide. The question of should these people be losing their jobs is the same as asking should these jobs have been created in the first place. These people would otherwise have been employed in different markets perhaps, but those markets were still there, they were just given the opportunity of a preferred job in the games industry. Now they have experience they can take forward.
I think he is almost completely wrong about the situation but I give him credit for not being afraid to speak up. Defending anything Embracer has done is...well let's just say a very uphill battle so I'm shocked to see someone try it.
Lars isn't the only one responsible but he certainly had a large part of the blame.
@thefourfoldroot1 I think that’s a fair point. Look at it as experience in something they would maybe otherwise not have gotten. Still think it’s horse manure that this guy is trying absolve a CEO of pretty much the one thing CEOs are supposed do to get their pay plus bonuses. If they succeed, it’s their galaxy brains. If they fail, it’s the market.
This CEO sounds like the kind of person who shouldn't be making public statements.
"Look, I know you lost your jobs or whatever, but if it wasn't for us, you wouldn't have had a job in the first place. Show some gratitude, peasant."
F that guy.
Monkey see monkey do
Because of their BS, a lot of people got laid off and companies got shut down for no reason besides their arrogance and greed and their trying to kiss up to the Saudis that failed. I will NOT give a stupid billionaire a break!
Funny coming from someone who's studio didn't shut down and was able to get out from under Embracer
Blaming the "loss of jobs" on the employer is just empty virtue signaling. If the market is healthy, a job lost equals at least another job created.
In the case of Embracer, they were obviously to blame, but not on job losses per se. The real losers here were the investors, but that is a really unpopular opinion even though it's a cold hard fact.
Is He a Bad Guy?
He might not be consciously putting on a "Black Hat and Twisting his Mustache", but
"The Road to H*LL is constantly being Paved with these Investment Groups Good Intentions", and it seems like it's Always the people and their Jobs that get Paved Over, regardless of intentions.
The Problem with People like him and other's inside these Massive Investment Groups, is they don't seem to understand that the Gaming Industry is a more nuanced investment opportunity, they need to treat Video Games as an "Art Form" First, and then as a (longer term) Investment opportunity secondly, in order to truly squeeze the utmost Potential and Profit out of the Game Development Process.
In other words they tend to break it down to basic Bean Counting, and so I don't think they understand the "Weird Formalic Balancing Act" that an Art Form like this requires them to do, to get the most out of the Game Development Process and it's Massive Profits potential.
Things desperately need to happen to change this Mindset, otherwise it's going to keep pulling down the whole Gaming Industry..
Happy Gaming ✌!
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