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One of the biggest ones was theclosureof the Saints Row developer Volition.
Last week we covered Embracer Group doingpersonnel cutsat Tiny Tina’s Wonderlands support studio Lost Boys Interactive.
Rumors are swirling of the closure of Piranha Bytes as another example of Embracer Groups financial mismanagement.
There have also beenreportsof Embracer trying to sell off Gearbox.
There have been dozens of other reports of layoffs that we haven’t covered.
Timesplitters developer Free Radical Design was also closed down right before the holidays in 2023.
Many have cheered as the acquisition of Activision Blizzard and King by Xbox was finally approved, but is consolidation really a good thing?
Is Piranha Bytes studio closing?
It is disheartening to see so many long-standing and prolific studios being shuttered due to bad planning and management.
Why is Embracer Group laying off employees and closing studios?
Will ABK titles flourish under the new Microsoft ownership?
However, in May of 2023, everything changed.
Stock shares plummeted 40% and the company has little chance of recovering.
Is consolidation in the video game industry bad?
Will Microsoft keep acquiring studios to add to its portfolio, or is ABK the last big spend?
I’m not a Sith, and so I don’t like dealing in absolutes.
We all know that from time to time there will be hurricanes.
Microsoft of course hasn’t been immunefrom layoffsand restructuring of its many divisions.
Marvel’s Avengers developer, Crystal Dynamics, was scooped up by Embracer, but has since been affected by layoffs.
All of that changed when the Xbox acquisition was announced.
Phil Spencer has kept his promise, andBobby Kotick is no longer affiliatedwith ABK.
Should we expect more Xbox acquisitions in the future?
If it turns into acquisitive M&A work, we are active there too, Spencer said.
So the work for us never ends.
It is a competitive market and I want to verify Xbox is at the forefront of innovation and competition.
I do believe Xbox is looking to find new and exciting opportunities to bolster its first-party offering.
The FTC is still fighting Xbox on the ABK merger even though it has been finalized.
Should consolidation in the video game industry continue?
I think Xbox should be careful with future acquisitions.
This kind of move should never be an option.
