Embracer Group canceled 29 games in 6 months

In yet another evidence of how unsustainable the current video game model based on endless acquisitions and numerous layoffs is, Embracer Group has confirmed the cancellation of no less than 29 games over the last six months.

As part of its restructuring plan, we know that in the first quarter of this fiscal year, ending in June, the company had 153 projects in progress between internal studios and external financing. From that point on, things went downhill fast.

In the second quarter, the total dropped to 138, and finally, to 124 in the third quarter, in December. It is essential to note that over this period, its workforce was reduced by 8%, leading to a total of 1,387 layoffs. This included cuts to 871 internal developers, 264 external developers, and 252 internal employees who were not actively involved in development.

According to Lars Wingefors, the CEO of Embracer, “there are still some processes to complete that will strengthen our financial balance. We are in the final stretch, and these processes are already mature”.

These are particularly dark times for gaming companies that do not operate in the East. With the increasing cost of games, a model based on numerous acquisitions and layoffs, and an incresing number of cancellations, we can already glimpse some signs that a possible crash is coming if things continue as they are.

Via: Videogameschronicle