Embracer Group COO Has Left the Company

Embracer Group COO Egil Strunke has announced his departure from the company via a post shared on LinkedIn. In the post, Strunke mentions his desire to build a new company, aptly titled Strunke Games. At this time, the company's plans remain vague, but Strunke wants to "support and be involved in some of the most interesting gaming studios, companies and projects around the globe as the games industry continues its constant change." While Strunke did not attribute his departure to the recent troubles that have surrounded Embracer Group, he did share his confidence that the company will be able to turn things around. 

In the post, Strunke details how he served with Embracer from 2011-2014, which he describes as the company's "early foundational days." After leaving the company for a time, Strunke found himself back at Embracer, "returning 2019 to a sizzling, acquisitional hotbed where new entrepreneurs and exciting studios were added quarter by quarter. Growing employees 14x to 16.500 and revenue 8x to circa 40 billion SEK in four years has been an amazing experience and adventure. Although the last year has been rough, in line with general market changes and industry consolidation, I am positive that Embracer will come out stronger and with a long, bright future ahead of them." 

Embracer Group Struggles

As Strunke mentions, Embracer had become a "acquisitional hotbed." Acquisitions have always been a part of the video game industry, but things have really been heating up over the last few years, with Embracer being at the center of several major purchases. In 2022 alone, Embracer added Crystal Dynamics, Limited Run Games, and Dark Horse Media to the list of companies under its umbrella. However, Embracer's fortunes seemed to reverse in a major way in 2023, after a reported $2 billion deal fell apart. Over the last few months, Embracer has made a concerted effort to turn things around, resulting in layoffs at studios like Crystal Dynamics, and even the closure of Saints Row developer Volition. There have also been rumors that Embracer is looking to sell Borderlands developer Gearbox Software. 

The Future of Embracer

All of these recent developments have led to uncertainty about Embracer's future, and the future of the studios it owns. There has been a lot of concern about the impact acquisitions can have on the video game industry, and it's possible Embracer might have bit off more than it can chew. While Strunke notes his confidence about the company's future, others in the video game industry can't be blamed for having some concerns. Embracer isn't the only video game company to announce layoffs this year, but clearly things aren't going as well today as they were in 2022. 

Do you think Embracer Group will be able to turn things around after a tough 2023? Are you surprised to learn the company's COO has left? Share your thoughts with me directly on Twitter at @Marcdachamp or on Instagram at @Dachampgaming!

[H/T: GamesIndustry.biz]