Founded in 1997, Piranha Bytes is now facing closure in 2024: The German gaming studio developed three of the most famous German role-playing series with Gothic, Risen, and ELEX. But apparently, that is coming to an end. Due to the crisis of the gaming locust “Embracer Group,” the studio is threatened with closure after more than 25 years.
What kind of studio is this? Piranha Bytes was founded in Essen and was known for many years for the role-playing series “Gothic” (2001-2006), which was considered one of the few German game series that could compete internationally.
Later, the studio also developed the action role-playing games Risen 1-3 and ELEX 1 and 2.
Gaming “Locust” Acquires Studios But Overextends Itself
What was the problem? In May 2019, the company THQ Nordic purchased the development team Piranha Bytes and the brand rights. THQ Nordic became the “Embracer Group” in August 2019.
This “Embracer Group” went on a shopping spree from 2020 to 2022, acquiring numerous studios and gaming companies, even grabbing GearBox (Borderlands) for 1.3 billion US dollars.
The idea was apparently to form a large European gaming corporation that is “too big to fail.” However, due to a change in the economic situation, things did not look so rosy in 2023. The company fell into financial difficulties and has since been considered a problem child in the gaming market.
First Overindulged, Now “Healthily Shrinking”
In June 2023, the Embracer Group announced a “comprehensive restructuring with layoffs.”
In 2023, many speculated that 2024 would bring a rude awakening for the gaming industry, especially for the German gaming market, as many studios, including Piranha Bytes, had become dependent on the Embracer Group, which now planned to “cut costs and shrink healthily.”
This crisis now also seems to be affecting Piranha Bytes.
According to Sources, Piranha Bytes is Facing Closure
What is happening with Piranha Bytes? As reported by GameStar and others, Piranha Bytes seems to be on the brink of closure. Although there is still no official statement from the Embracer Group, it seems clear: The studio is threatened with closure:
- The website has been taken down
- No new videos are coming
- A project that is supposed to be Elex 3 is no longer on the list of funded games by the Federal Ministry of Economics.
Sources report to GameStar that Piranha Bytes is on the verge of closure. Only the German dismissal protection law seems to currently stand in the way of an official closure.
According to GameStar, the sales flop Elex 2, which performed well below expectations, was apparently the final nail in the coffin for Piranha Bytes.
This might be a sliver of hope for fans of Gothic:
Gothic has robbed me of my youth – Now it’s coming as an MMO, and that gives me the rest
