Gearbox, the developer behind the popular Borderlands franchise, is reportedly up for sale by its parent company, Embracer Group. Embracer, a Swedish conglomerate, is looking to restructure its operations after a $2 billion deal with Saudi Arabia government-funded Savvy Games Group fell through earlier this year. As a result, Embracer has been cutting down on spending, which includes closing down studios and laying off employees. Gearbox, which was acquired by Embracer just two-and-a-half years ago, is now the latest casualty in this restructuring process. Allegedly, some international gaming groups have expressed interest in acquiring Gearbox, although their identities have not been disclosed.
Bloomberg’s Jason Schreier reported that while it is not confirmed whether Gearbox will be sold off, Embracer is definitely looking to part ways with the developer. Gearbox Chief Creative Officer Dan Hewitt stated in an email to staff that while the base case is for Gearbox to remain a part of Embracer, there are other options under consideration, including Gearbox becoming independent. Ultimately, the decision will be based on what is best for both Gearbox and Embracer.
Embracer has been on an acquisition spree in recent years, acquiring various game studios and building an empire. Some of the notable acquisitions include Crystal Dynamics, known for Tomb Raider, THQ Nordic, the developer of Remnant II, and Deep Silver, the studio behind Dead Island 2. Embracer also acquired the franchising rights for The Lord of the Rings and The Hobbit. However, these acquisitions came at a significant cost, which was initially covered by the failed deal with Savvy Games Group. Embracer now finds itself dealing with the financial consequences of that failed investment.
In the midst of all the restructuring, Embracer confirmed earlier this year that The Lord of the Rings franchise would be getting an MMO adaptation developed by Amazon Games’ Orange County Studio. The game is in the early stages of development and will feature stories from the LOTR and The Hobbit, based on the works of J.R.R. Tolkien. Embracer had previously announced in February that it had five video games based on the Middle-earth franchise in development, including The Lord of the Rings: Gollum, which received mixed reviews and led to the closure of the development division at Daedalic Entertainment.
Despite the ongoing restructuring, Crystal Dynamics, one of Embracer’s acquisitions, reassured fans that it would not impact the development of the upcoming Tomb Raider game. Embracer is also responsible for the long-awaited Star Wars: Knights of the Old Republic remake, which switched studios from Aspyr Media to Saber Interactive in August 2022.
Unique Perspective:
The gaming industry is known for its constant evolution and changes in ownership. Embracer Group’s decision to put Gearbox up for sale highlights the challenges faced by companies in maintaining a successful portfolio of game studios. The fallout from the failed deal with Savvy Games Group has forced Embracer to reevaluate its strategy and make difficult decisions. As the gaming market continues to grow and evolve, it will be interesting to see how Embracer Group navigates these challenges and reshapes its operations to stay competitive.
