The Embracer Group has gone through turbulent years. After extensive layoffs, studio closures, project cancellations, and a restructuring of the entire group, there may finally be a light at the end of the tunnel.
What is fueling the optimism? Initially, not the figures in the freshly published business report for the first quarter of the financial year 2024 (via embracer.com). While the results are within expectations, the targeted revenue forecasts have not been met.
The main reason: Between April and June 2024, there were hardly any releases, whereas in the comparative quarter of 2023, there was a hit with Dead Island 2. CEO Lars Wingefors, however, is optimistic that the situation will significantly improve when hopeful titles like Kingdom Come: Deliverance 2, Disney Epic Mickey: Rebrushed, Titan Quest 2, and the Gothic 1 Remake are released.
Fans of medieval RPGs should keep an eye on Kingdom Come: Deliverance 2 – here is the trailer:
Strong focus on Middle-earth
What measures are planned? In the financial report, the Embracer executives announce a stronger focus on the licenses of “Middle Earth Enterprises”, primarily “The Lord of the Rings” and “The Hobbit”. Current projects like the MMORPG from Amazon Games or the animated film “The Lord of the Rings: The War of the Rohirrim” are intended to be just the beginning.
Furthermore, the expansion of the franchise is ensured by a long-term partnership with Warner Bros. Pictures and New Line Cinema for additional film projects. Additionally, several game concepts and prototypes are currently undergoing a greenlight process to identify more exciting game projects for the Lord of the Rings franchise.
Moreover, Embracer is still undergoing consolidation in the form of splitting the group into three independent, publicly traded entities:
- Asmodee Group (board games, collectible cards, tabletop)
- Coffe Stain & Friends (PC, mobile, and console games with small to medium (double-A) budgets) – this unit includes THQ Nordic, Black Forest Games, HandyGames, and the remnants of Piranha Bytes
- Middle-Earth Enterprises & Friends (this unit contains the key brands for blockbuster productions: Lord of the Rings, Tomb Raider, Metro, Dead Island, or Kingdom Come: Deliverance) – this unit includes Plaion, Crystal Dynamics, Eidos Montreal, and Fishlabs
Initially, Asmodee is set to spin off before the end of the current financial year, which is by March 2025. Coffe Stain & Friends is expected to follow during 2025. If you want to revisit the entire plight of Embracer, check this out: Group miscalculates, has to lay off 1,400 employees, and who is to blame? The war and COVID
