Posted in: Games, Video Games | Tagged: Embracer Group, Savvy Games Group

Embracer Group To Shut Down Studios After Saudi-Funded Deal Fails

Details have emerged that Embracer Group was set to do a massive deal with Savvy Games Group, which was funded by the Saudi government.

Embracer Group are looking to shut down multiple studios after a major deal fell through, which would have had them partner with the Saudi Arabia Public Investment Fund. The Swedish studio has become one of the major companies that have been buying up gaming properties and studios like crazy over the past few years, as they have a lock on a ton of titles and companies you know by heart. Some of those studios include Gearbox Entertainment, Saber Interactive, THQ Nordic, Dark Horse Media, Coffee Stain, Asmodee, and more. Earlier this year, the company looked to be making a groundbreaking deal, until a mystery partner pulled out and cost them a ton of earnings in the process. After doing some digging, Axios revealed the controversial Saudi-government-backed Savvy Games Group was the mystery partner.

According to the report, the investment was basically a done deal up until recently, when Savvy Games Group backed out of the deal altogether. The group remained a mystery partner until Embracer Group started reporting record losses due to the decision and immediately declared they were going into cost-cutting mode. This, simply put, means we're going to start seeing a lot of the studios they've acquired over the past seven years either get sold off or shut down entirely, putting a ton of video games currently in development into question. Once that happened, it was only a matter of time before people figured out who was behind the mystery, as few companies would have the capital to cause that big a shift.

As of the time we're writing this, it is unclear as to the reason why Savvy Games Group pulled out. However, speculation on social media and from other outlets is that it most likely had something to do with Saudi Arabia's controversial stances and practices, and how they suddenly seem very keen to invest in ventures to improve their image, including sports and gaming. We'll keep an eye on this to see what develops, but regardless, this is a major setback for Embracer Group, who may end up being a shadow of what they currently are before the year is over. Hopefully, they simply decide to sell studios to others rather than kill those companies so we don't end up with record job losses in the industry.

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