Windows Central-Embracer is showing the dangers of irresponsible consolidation, stands in stark contrast to Xbox (Hmmm paid piece?) Thoughts?

[Gamernyc78]

A huge gaming company, Embracer Group, is showcasing the dangers of irresponsible consolidation

Rumors of Embracer Group shutting down another beloved studio highlight the need for more careful acquisitions in the future.

www.windowscentral.com

It seems like there isn't a month that goes by that we don't hear about another round of layoffs or studio closures from Embracer Group. One of the biggest ones was the closure of the Saints Row developer Volition. Last week we covered Embracer Group doing personnel cuts at Tiny Tina's Wonderlands support studio Lost Boys Interactive. There have also been reports of Embracer trying to sell off Gearbox. There have been dozens of other reports of layoffs that we haven't covered. Reports from people being let go from Eidos Montreal and Crystal Dynamics have also hit the news waves over the past 6 months. Timesplitters developer Free Radical Design was also closed down right before the holidays in 2023.

This starkly contrasts with Xbox, which is continually trying to hire new talent and grow its longstanding and newly acquired studios. That being said, it would be naive to think that Xbox will always be this invested in its gaming arm, and if nothing else Embracer Group should be seen as a cautionary tale of the dangers of overzealous consolidation.

The issue at hand here is that a company taking on the livelihood of hundreds to thousands of employees better have a hurricane preparedness plan ready. I'm hopeful that Xbox does have such a plan, but it seems that the Embracer Group not only wasn't ready for the fallout of a disaster but should have had the foresight to see this $2 billion deal falling through as a possibility.

I think acquisitions are likely to start to slow down in the video game sector due to lowering sales and the economy as a whole slowing down. The only issue with that is independent studios will still shut down as they aren't able to stay afloat. The truth of consolidation is that there will always be risks and downsides, but if we see another rising star like Embracer Group come around purchasing dozens of studios without as much as a road map for the company's future, hopefully, we will raise concerns before it is too late.

 

[Gediminas]

A huge gaming company, Embracer Group, is showcasing the dangers of irresponsible consolidation

Rumors of Embracer Group shutting down another beloved studio highlight the need for more careful acquisitions in the future.

www.windowscentral.com

 

[AshHunter216]

absolutely shameless, lmao.

 

[Gamernyc78]

absolutely shameless, lmao.

They acquire to then shortly layoff and shutter so many ppl. Xbox consolidation isn't no better they are going to mismanage, layoff as well and do horrible things to beloved ips.

 

[Johnic]

lol

 

[Yurinka]

What an awful article.

MS is supposed to be a good example of studio management and handling acquired companies? What a joke.

Plus the only slowering sales are the Xbox ones, gaming sales are increasing every year. Plus there are no signs of consolidation going to stop: MS, Sony, Tencent, Saudis and others will continue acquiring.

And the economical crisis won't affect gaming, economical crisis instead always bumped gaming, particularly digital purchases because during crisis people stays more at home and invests more in home entertainment.

In 2024, like in all previous years the gaming market revenue, amount of companies and workers will continue growing. Yes, some companies will need to cut the fat and fire people. Yes, other ones will be acquired or will shut down. But even more companies will hire people or will be created. And PS will continue eating Xbox market share for breakfast.

 

[AshHunter216]

MS is supposed to be a good example of studio management and handling acquired companies? What a joke

And apparently all acquisitions are bad except Microsoft's.

 

[Gamernyc78]

Had to get some humor up on here the money is in the bag.

 

[AfnanAcchan]

Microsoft Layoffs Affect Bethesda, 343 Industries, and The Coalition

Xbox Studios have been heavily affected by these layoffs.

www.thegamer.com

 

[Gediminas]

I sold 1kg of cocaine, you sold 1,2kg, so i am better.. trust me, bro..

 

[Neversummer]

Wonder if this guy will have the same tone when Sony buys a publisher. Rumor Sony is gonna call out there 10 billion $ acquisition of India media company adding an additional 10 billion to its previous 10 to 13 billion $ MNA acquisition budget, great now secure Kadokawa, Square Enix & Capcom

 

[Gamernyc78]

Wonder if this guy will have the same tone when Sony buys a publisher. Rumor Sony is gonna call out there 10 billion $ acquisition of India media company adding an additional 10 billion to its previous 10 to 13 billion $ MNA acquisition budget, great now secure Kadokawa, Square Enix & Capcom

I respect fuferebces of opinions but some takes are just so out there it makes you think.

 

[Neversummer]

What an awful article.

MS is supposed to be a good example of studio management and handling acquired companies? What a joke.

Plus the only slowering sales are the Xbox ones, gaming sales are increasing every year. Plus there are no signs of consolidation going to stop: MS, Sony, Tencent, Saudis and others will continue acquiring.

And the economical crisis won't affect gaming, economical crisis instead always bumped gaming, particularly digital purchases because during crisis people stays more at home and invests more in home entertainment.

In 2024, like in all previous years the gaming market revenue, amount of companies and workers will continue growing. Yes, some companies will need to cut the fat and fire people. Yes, other ones will be acquired or will shut down. But even more companies will hire people or will be created. And PS will continue eating Xbox market share for breakfast.

Saudi Arabia has already stated they wanted to buy a major gaming publisher & w them already acquiring SNK/NeoGeo I can definitely see them acquire a family friendly publisher like Sega/Sammy to help there image.

I can also see Disney buying a publisher securing a spot in gaming

& China invested in Ubisoft its only time till they get acquired

 

[Bryank75]

They're almost the same, except Microsoft is more predatory in nature...

We're going to see all the negative effects of this play out sooner than Jez thinks.

The timing of this article really highlights that he knows nothing except what Microsoft wants him to know.

 

[Gamernyc78]

They're almost the same, except Microsoft is more predatory in nature...

We're going to see all the negative effects of this play out sooner than Jez thinks.

The timing of this article really highlights that he knows nothing except what Microsoft wants him to know.

I thought it was common knowledge Jez knows nothing.

 

[Yurinka]

Saudi Arabia has already stated they wanted to buy a major gaming publisher & w them already acquiring SNK/NeoGeo I can definitely see them acquire a family friendly publisher like Sega/Sammy to help there image.

I can also see Disney buying a publisher securing a spot in gaming

& China invested in Ubisoft its only time till they get acquired

I don't see Sega wanting to sell, and in case they would want to sell, I assume they'd sell to a Japanese company.

Disney already tried to have their own studios and didn't work. They are way more successful and safe with their current approach of letting external top devs handling their IPs. A smarter strategy because allows them to release way more games and way better than if developed inhouse.

Tencent (not China, even if like in companies like MS they are linked to the ones who run the country) gave money to the Guillemot family to allow them to control the majority of the company shares, meaning helping them to be safe from potential unwanted hostile takeover acquisitions.

Guillemots don't want to sell and the employees and main investors support this. Tencent also signed that they weren't going to acquire (or sell) Ubi stocks in 5-8 years. Meaning, Tencent and anybody else won't buy Ubisoft, at least until the 5 Guillemot brothers decide to retire.

Ubisoft wants to continue being independent and supporting all platforms.

 

[Gamernyc78]

I don't see Sega wanting to sell, and in case they would want to sell, I assume they'd sell to a Japanese company.

Disney already tried to have their own studios and didn't work. They are way more successful and safe with their current approach of letting external top devs handling their IPs. A smarter strategy because allows them to release way more games and way better than if developed inhouse.

Tencent (not China, even if like in companies like MS they are linked to the ones who run the country) gave money to the Guillemot family to allow them to control the majority of the company shares, meaning helping them to be safe from potential unwanted hostile takeover acquisitions.

Guillemots don't want to sell and the employees and main investors support this. Tencent also signed that they weren't going to acquire (or sell) Ubi stocks in 5-8 years. Meaning, Tencent and anybody else won't buy Ubisoft, at least until the 5 Guillemot brothers decide to retire.

Ubisoft wants to continue being independent and supporting all platforms.

Interesting info, thnks for sharing.

 

[AshHunter216]

Also, it is Windows Central, they're always going to paint MS in the most positive light possible.

 

[thicc_girls_are_teh_best]

You're asking it's a paid piece when the name of the website is Windows Central? . I'm not even reading that trash or giving them a click.

 

[Kx11]

Give Tomb Raider, Naughty Dog needs new ideas to steal for the new Uncharted