After a huge loss, Embracer Group is reportedly restructuring and canceling games according to an open letter. This news comes after the studio acquired several IPs such as Tomb Raider and Deus Ex from Square Enix, but now it appears any games being developed for those IPs could be in danger according to an open letter from Embracer themselves.
"This morning we announced a restructuring program across the Embracer Group that will make us a leaner, stronger, and a more focused, self-sufficient company...
The program presented today will transform us from our current heavy investment mode to a highly cash-flow generative business this year. It will enable us to meet the worsening economy and market reality as a strong company and it will fundamentally change our prioritization of growth with raised capital towards optimization and growth based on our own cashflows...
The program is divided into different phases until March 2024 with a focus on cost savings, capital allocation, efficiency, and consolidation."
This news comes following the recent loss of an undisclosed $2 billion deal that fell through the night before Embracer had its quarterly earning report. This news caused Embracer Group's stock to drop 40%, which more than likely led to this decision from Embracer Group to start cutting games and studios.
According to Crystal Dynamics, the Tomb Raider game currently being created in collaboration with Amazon Games isn't affected by these cuts.
"We want to reassure fans that there will be no impact to our continuing efforts with our partners at The Initiative on Perfect Dark, or our next Tomb Raider title being developed in collaboration with Amazon Games."