You may not have heard of Embracer Group, however you’ve in all probability performed one thing a studio it owns developed. Have you performed Tiny Tina’s Wonderlands, Valheim, Elex II, or Shadow Warrior 3 not too long ago? Then you’ve been having fun with a recreation from Embracer.
While Embracer’s identify may not be on the field or retailer web page, this European holding firm has subtly grow to be one of many greatest firms within the gaming house. If there’s a AA recreation launching, this studio seemingly has a hand in it. And quickly, the corporate shall be behind main franchises like Tomb Raider now that it’s shopping for Crystal Dynamics, Eidos Montreal, and Square Enix Montreal.
These acquisitions communicate to the continued progress of Embracer Group, which seems like it’s going to grow to be a much bigger participant within the AAA gaming house within the years to come back. While Embracer Group has fallen beneath the radar for many individuals over the previous decade, it’s price listening to within the years to come back.
Starting the embrace
“Embracer Group is a parent company of businesses led by entrepreneurs in PC, console, mobile and board games, and other related media,” the corporate boasts on its web site. “The group has an extensive catalog of over 850 owned or controlled franchises.”
Embracer Group is a holding firm that constantly buys loads of new studios and IP, making it the considerably obscure dad or mum firm of a number of notable publishers and builders. It doesn’t assist that Embracer Group has really passed by many names through the years.
Originally referred to as Nordic Games, the corporate has steadily acquired numerous IPs and studios since 2011. A major shift occurred in 2016 when the corporate rebranded to THQ Nordic AB after buying the trademark for, and plenty of belongings of, the defunct basic writer at public sale.
“Embracer is the best-kept secret in gaming.”
This is perhaps essentially the most recognizable interval of its historical past, although the corporate additionally confusingly had a subsidiary known as THQ Nordic GmbH that printed video games like Battle Chasers: Nightwar and Darksiders 3. The THQ Nordic identify obtained sullied when the THQ Nordic GmbH held an AMA on the controversial platform 8Chan in early 2019.
While THQ Nordic GmbH apologized for this occasion, its dad or mum firm determined to finish the confusion later that yr and altered its identify to Embracer Group. This transfer saved THQ Nordic as a publishing subsidiary as Embracer Group acquired new builders and publishers like Saber Interactive and Gearbox Entertainment.
Embracer Group owns too many firms and franchises to listing right here, however know that as of 2022, Embracer Group nonetheless exists and continues to accumulate new studios and IP by way of 10 working teams that it owns. Here’s a have a look at what the group at present owns.
THQ Nordic
Koch Media
Saber Interactive
Gearbox Entertainment
DECA Games
Coffee Stain
Amplifier Game Invest
Easybrain
Asmodee
Dark Horse Media
Companies like Saber, THQ Nordic, and Gearbox have the autonomy to make their very own acquisitions, additional fueling progress for Embracer Group. While this strategy implies that not many players will know the identify Embracer Group, it’s very seemingly that they not less than know of a recreation made by a studio that falls beneath this publiclytraded firm’s gigantic umbrella.
Crystalizing the embrace
On May 2, Embracer Group introduced it will purchase Crystal Dynamics, Eidos Montreal, and Square Enix Montreal from Square Enix for $300 million. Currently, these studios aren’t beneath an organization like Saber or Gearbox, bringing much more consideration to Embracer’s existence.
“Embracer is the best-kept secret in gaming: A massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today,” Square Enix America and Europe CEO Phil Rogers stated when Embracer Group acquired the previous Square Enix studios. While that’s a extremely optimistic interpretation of Embracer Group’s technique, it speaks to how huge Embracer is regardless of its relative obscurity.
Embracer’s newest acquisitions signify its intent to make extra big-budget AAA video video games. While THQ Nordic and Deep Silver are usually not unknown firms, they’ve extra of a repute for producing mid-budget or “AA” video video games. As Embracer Group continues to develop, it clearly desires to vary that.
Several AAA titles like the brand new Saints Row and the remake of Star Wars: Knights of the Old Republic are in growth at studios Embracer owns. Notably, Embracer emphasised the AAA capabilities of Square Enix studios’ upon the acquisition.
“Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases,” Embracer Group stated within the acquisition press launch. “There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.”
These acquisitions carry extra AAA-level studios that make use of over 1,100 builders beneath its belt. Franchises like Tomb Raider and Deus Ex are multimillion sellers, so Embracer isn’t making its AAA franchises from scratch.
A future embrace
“I’m looking a decade ahead,” Embracer Group CEO Lars Wingefors stated in a presentation in regards to the acquisitions. “I want to create some amazing new big games with high quality or very high ambitions together with the teams. And what I’ve seen, I’m thrilled about.”
While there may be the occasional shock hit like Valheim, Embracer Group has but to essentially have a AAA success on the extent of Ubisoft’s Assassin’s Creed or EA’s Battlefield collection. Acquiring these Square Enix studios for 300 million is a giant step in making that occur.
Embracer Group’s technique for fulfillment appears to be to constantly purchase studios so it might probably launch as many profitable video games as potential. The extra which are on a AAA degree, the higher. According to the presentation about these acquisitions, Embracer Group has over 230 video games within the pipeline throughout each studio it owns. Thirty of these are AAA titles, and it’s secure to imagine that quantity will proceed to develop.
Couple that with its acquisition of non-video recreation firms like Asmodee and Dark Horse, and Embracer Group will solely grow to be extra outstanding and extra related in and outdoors of video video games for years to come back.
While Embracer primarily has been buying studios and IP within the minor leagues for years, it’s an organization like Tencent or Microsoft you could not ignore in the case of online game acquisitions. Because acquisitions within the online game business are so sizzling proper now, this has confirmed to be a profitable technique for Embracer Group.
Take a have a look at the whole lot it owns; you simply is perhaps shocked. In just a few years, one of many greatest AAA video games of the yr might need some connection to Embracer Group. It’s an organization that we’ll seemingly see much more from within the coming years.
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