The video game industry is at a critical point. In this line, Embracer Group has been doing everything possible to cut expenses, resulting in over 1000 layoffs, project cancellations, and studio closures. Now, it appears they are gearing up for another significant move.
According to a recent report by Jason Schreier for Bloomberg, Embracer Group will sell Saber Interactive, one of its major subsidiaries, to a group of private investors in a deal worth up to $500 million. This is the latest step in their large-scale restructuring plan.
The publisher and development studio responsible for World War Z and the upcoming Warhammer 40,000 Space Marine 2 will separate from Embracer Group and become an independent company (not publicly traded) with around 3500 employees, according to a source familiar with the matter, as reported by Bloomberg.
It is unknown whether the deal includes all teams and subsidiaries of Saber Interactive, such as the Ukrainian studio 4A Games of Metro. Jason Schreier indicates that the deal will encompass "the majority but not all," emphasizing that details are not sufficiently clear at this moment.
Recall that Embracer Group initially acquired this company in 2020 for $525 million.
What Will Happen to the Star Wars: Knights of the Old Republic Remake?
Saber Interactives upcoming project is Expeditions: A Mudrunner Game, set to hit stores on May 5. They are also working on two high-profile releases: Warhammer 40,000 Space Marine 2, scheduled to debut on September 9, 2024, and the remake of Star Wars: Knights of the Old Republic, which does not have a release date yet.
Now, is the licensed Disney franchise project at risk of cancellation? According to Jason Schreier, the studio will still work on the new version of the 2003 classic, but he cannot guarantee it will ever make it to stores.
Star Wars: Knights of the Old Republic Remake was announced with great fanfare at a 2021 PlayStation Showcase; however, it seems that development is quite problematic. Embracer Group removed Aspyr from the lead of the production, and Saber Interactive is now in charge of the project.
