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Embracer is splitting into three companies: -Asmodee Group -Coffee Stain & Friends -Middle-earth Enterprises & Friend

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Fabieter

Member
This happens with alot of big companies which struggle for one reason or another so no biggie and nice foe AA fans ;).
 

Chukhopops

Member
Well that’s kinda clever, you give the least profitable part of your company the ownership of all your IPs, then you license those to the more profitable parts “on market terms”.

And voila, you have three beautiful entities doing the almost same amount of sales and EBIT.
 

Mr Reasonable

Completely Unreasonable
I saw this a few minutes ago and had to wait for a few more reactions to those names before I knew if I was still asleep or not.
 

CamHostage

Member
Weird approach... there are a lot of Embracer studios which wouldn't fit under these three buckets IMO (although a few studios have already bought independence or have closed.) I guess a lot of them would go under Coffee Stain, but that publisher hasn't been that big in the past so I'd be surprised if it could absorb everything left of Embracer not under the other two groups.

Bruh, these names are just dumb

The "& Friends" tag-on is goofy, bur Asmodee and Coffee Stain are already established publishing labels. And Middle-Earth Enterprises is self-explanatory.

 

Denton

Member
Interesting. I guess Lars Wingefors figured the Embracer name has become poisoned well at this point and would be unlikely to regain its reputation (and thus share price), plus it still had large debt. So this is a way to resolve it.
 

Robochobo

Member
No one will fund another 150m deux ex no one ends up buying. If consumers want certain things they have to buy it to show interest.
Well yeah no shit. Thats just another one of Square Enix's dumbfuck decisions to add onto the list of a multitude they've done this past decade. It didn't even sell poorly, they spent to much and had completely unrealistic sales expectations. The reboot of Tomb Raider sold nearly 4 million in a month and they were disappointed at the numbers. The series only needs a competent and capable publisher. The game/IP will do the rest.
 

Dazraell

Member
The "& Friends" tag-on is goofy, bur Asmodee and Coffee Stain are already established publishing labels. And Middle-Earth Enterprises is self-explanatory.
I'm familiar with these companies, but this split is just a dumbass choice if you ask me

Let that sink in. Someone thought of putting AAA games alongside LotR brand into one basket under "Middle-Earth & Friends" label. These names sounds like something straight out of that meme where two people give stupid ideas to their boss and one who is giving a logical idea is thrown out of the window
 

MrTired

Member
Well yeah no shit. Thats just another one of Square Enix's dumbfuck decisions to add onto the list of a multitude they've done this past decade. It didn't even sell poorly, they spent to much and had completely unrealistic sales expectations. The reboot of Tomb Raider sold nearly 4 million in a month and they were disappointed at the numbers. The series only needs a competent and capable publisher. The game/IP will do the rest.
What are you talking about? 150 million was the cost of making AAA version of the game that would meet consumers expectations compared to the other AAA releases. Your somehow telling me consumer on mass wanted a cheapen out version on the game? Deux Ex was a quality product however the market for the title clearly wasn't there.
 

Dazraell

Member
What are you talking about? 150 million was the cost of making AAA version of the game that would meet consumers expectations compared to the other AAA releases. Your somehow telling me consumer on mass wanted a cheapen out version on the game? Deux Ex was a quality product however the market for the title clearly wasn't there.
He's right as Square Enix was notorious for overspending the budget for their games to the point that even best selling games in the franchise were deemed as financial failures. It became a running gag at certain point. Deus Ex Mankind Divided was a direct casualty of Square Enix Europe's branch bad decision-making. It was originally meant to be a longer game, but Square wanted to capitalise on it and cut it to make into more games. That's why it ended so abruptly. That awful Breach mode apparently happened only because Square realized they fucked up and game may not have enough content
 
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whyman

Member
Awful names

What if they lose the lord of the rings IP?
I think they own it for games. That is the company now. The other studios have been separated. I think it’s a good thing, although did I read that as they screwed their embracer owners out of middle earth stock?
 

Fabieter

Member
Well yeah no shit. Thats just another one of Square Enix's dumbfuck decisions to add onto the list of a multitude they've done this past decade. It didn't even sell poorly, they spent to much and had completely unrealistic sales expectations. The reboot of Tomb Raider sold nearly 4 million in a month and they were disappointed at the numbers. The series only needs a competent and capable publisher. The game/IP will do the rest.

Will it tho? Its not like arcane had alot of success with their work and dont get me wrong iam a big fan of those. Its just not worth it for a aaa game.
 

MetalRain

Member
I think this is good for the investors and gamers, clearer delineation between focus areas so everyone doesn't need to do the same shit, every company doesn't get dragged to mud by other misfortunes.

Games don't often provide predictable revenue or clear growth roadmap that private equity likes. Even big studios fall from the grace.
 
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MrTired

Member
He's right as Square Enix was notorious for overspending the budget for their games to the point that even best selling games in the franchise were deemed as financial failures. It became a running gag at certain point. Deus Ex Mankind Divided was a direct casualty of Square Enix Europe's branch bad decision-making. It was originally meant to be a longer game, but Square wanted to capitalise on it and cut it to make into more games. That's why it ended so abruptly. That awful Breach mode apparently happened only because Square realized they fucked up and game may not have enough content
If Square Enix was the problem why did the IP end up with Embracer? It was available on the cheap. Why hasn't the market embraced a correctly budgeted stealth immersive sims?
 

Hudo

Member
It is really quite something that seemingly all of the retards in the upper management, including the CEO and CFO, have maintained their positions while fucking up the company.
 

Dazraell

Member
If Square Enix was the problem why did the IP end up with Embracer? It was available on the cheap. Why hasn't the market embraced a correctly budgeted stealth immersive sims?
You shouldn't look at the genre, but instead you should look at individual reason why MD underpeformed. Square had big plans related to Deus Ex - they had this whole "Universe" thingie layed out with mobile game, books and comics and this was supposed to lead to Mankind Divided. Ultimately, some of their choices impacted the game as players panned the abrupt ending, were frustrated with addition of mictransactions (which apparently were added last minute), augement your pre-order thingie and that they shoved that awful Breach mode instead of making story feel more complete like with Human Revolution

After this they probably made a decision to have Eidos Montreal working on other projects until they will figure out how to come back to this IP and during that time studio was busy with Shadow of the Tomb Raider and Guardians of the Galaxy. I think Square was mostly looking to sell Eidos Montreal and Crystal Dynamics as they were their internal studios and maintaining them costed them too much money, not to mention that both Avengers and Guardians of the Galaxy were commercial flops and there is currently an economical crisis. Costs in US and Canada are significantly higher than in Japan. If I remember correctly, part of the deal Embracer had with Square was them buying these two studios and IPs associated with these companies. Embracer was primarily looking for Tomb Raider IP, but got other ones as the part of the deal
 
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Boss Mog

Member
I'll still never understand how Embracer managed to nab the Tomb Raider and Deus Ex IPs plus their dev studios (Crystal Dynamics and Eidos Montreal) for so cheap. I'm sure Sony or MS would've paid more for those studios and IPs so why didn't SE sell it to them instead of Embracer?
 

T4keD0wN

Member
This is stupid, but perhaps it goes well for one of these entities, thats more than i can say about embracer as a whole at this point so i guess this could be seen as an upgrade.
 

SScorpio

Member
I'll still never understand how Embracer managed to nab the Tomb Raider and Deus Ex IPs plus their dev studios (Crystal Dynamics and Eidos Montreal) for so cheap. I'm sure Sony or MS would've paid more for those studios and IPs so why didn't SE sell it to them instead of Embracer?
MS was trying to get the Activision deal through the regulators. Buying more studios then probably would have stopped that deal from passing.
 

Pejo

Member
Me when I think about the fact that I never invested into Embracer group so I don't have to watch them lose my money by making just the absolute worst decisions.
Big Boi Dancing GIF by Outkast
 

Lunarorbit

Member
There has to be some tax or insider trading manipulation involved, that’s just dumb.
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I've been convinced since the beginning this is some money laundering scheme. At least the Saudis have something to show for their investment in video games.
But, where did all this money come from? I haven't seen any articles about this. Like I said the Saudis have their sovereign wealth fund; did the swedes just have private investments for embracer?
 
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