Embracer Group Considering Selling Borderlands Developer Gearbox Entertainment
Embracer Group, the Swedish company known for acquiring developers and IPs, is reportedly exploring the possibility of selling off Gearbox Entertainment, the studio behind the popular Borderlands franchise. According to sources familiar with the situation, the struggling fortunes of Embracer Group have led to interest from third parties in acquiring Gearbox.
The news, reported by Reuters (via Market Screener), comes at a time when Embracer Group is undergoing company-wide restructuring in an effort to improve its financial situation. The Swedish firm has faced significant challenges in recent months, resulting in the closure of certain studios and employee layoffs. A sale of Gearbox Entertainment could serve as a means for Embracer Group to shore up its finances and streamline its operations.
Struggling Amidst Restructuring and Financial Challenges
Embracer Group’s financial difficulties were highlighted by the closure of several studios, starting with Campfire Cabal, a studio that hadn’t even released a game yet. This was followed by the closure of Volition, the developer behind the popular Saints Row series. These closures, along with other measures to reduce costs, were initiated as part of Embracer Group’s ongoing restructuring efforts.
Recently, Embracer Group suffered a setback when a planned $2 billion agreement with another company fell through. This agreement, rumored to involve Savvy Games, funded by the Crown Prince of Saudi Arabia, would have provided a significant financial boost. The failure of this deal has further underscored the need for Embracer Group to seek alternative means to address its financial challenges.
Implications for Gearbox Entertainment and Borderlands Franchise
Gearbox Entertainment’s potential sale raises questions about the future of the Borderlands franchise, which has been a major success for the studio. With a strong fan base and multiple critically acclaimed titles under its belt, the Borderlands series has been a key driver of Gearbox Entertainment’s success.
If a sale does occur, it remains to be seen how the new ownership would handle the franchise. Will they continue to invest in the Borderlands series and support its dedicated community, or will they redirect resources elsewhere?
Challenges with Star Wars: The Knights of the Old Republic Remake
In addition to the potential sale of Gearbox Entertainment, Embracer Group-owned studio Saber Interactive is currently developing the highly anticipated Star Wars: The Knights of the Old Republic Remake. However, the project has encountered numerous challenges during production, leading to uncertainty regarding its release.
Fans eagerly awaiting the remake may be disappointed to learn about the difficulties faced by the development team. It remains unclear whether the game will successfully make it to market, further adding to the uncertain future facing Embracer Group and its subsidiaries.
The possibility of Embracer Group selling off Gearbox Entertainment highlights the challenges faced by the Swedish company as it navigates a difficult financial landscape. With ongoing restructuring efforts and the failure of a significant agreement, Embracer Group is exploring various options to stabilize its finances and streamline its operations. The potential sale of Gearbox Entertainment raises questions about the future of the Borderlands franchise and the eagerly anticipated Star Wars: The Knights of the Old Republic Remake. As the situation unfolds, fans and industry observers will be watching closely to see how these developments shape the gaming landscape.