Embracer Group CEO Lars Wingefors has responded to the criticism the company has faced for the last year, calling the backlash to its mistakes “painful.”
Wingefors opened up about the entertainment giant’s recent restructuring strategy, which involved laying off 1,387 workers and canceling 29 unannounced projects since June 2023, during an interview with GamesIndustry.biz. He admits fault when it comes to some of the Embracer’s decisions, adding that he’s “taking a lot of hits and criticism” both internationally and in the company’s home country of Sweden.
“As a leader and an owner, sometimes you need to take the blame and you need to be humble about if you've made mistakes and if you could have done something differently,” he said. “I'm sure I deserve a lot of criticism, but I don't think my team or companies deserve all the criticism. I could take a lot of that blame myself.”
Embracer, which oversees IP like The Lord of the Ring, Dead Island, Metro, Tomb Raider, and many more, announced yesterday that it would soon split itself into three separate companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. As Wingefors stated in a press release, Embracer’s intent with the move is to “unleash the full potential of each team and provide them with their own leadership and strategic direction.”
Wingefors says today that he still believes in Embracer’s mission, adding that this new structure will help achieve its goals. When asked to clarify what mistakes he should take the blame for, he referenced a “long list” of things he and the company could have done better.
“I still feel I have the trust from many or all of my key entrepreneurs and CEOs that have joined the group,” he added. “It's been difficult, but I think they all believed in the mission of Embracer. They also understand that the world has changed, we need to change. It's painful. We can't make all the games we wanted to make three years ago, but we need to adapt to it. We will still make games, we still have one of the biggest, if not the biggest, pipeline of games in the industry. And we have great plans over the coming years or decades.”
After making high-profile acquisitions like the purchase of Middle-earth Enterprises and Borderlands-maker Gearbox in 2022 and 2021, respectively, Embracer found itself in a tough spot after a $2 billion deal with Savvy Games Group fell through in 2023. In the time since, the company has shut down Saints Row developer Volition Games, sold Gearbox, seen a split from Saber Interactive, and much more. It’s grand restructuring plan is finally completed, though the extent of its impact likely won’t be fully realized for quite some time.
“It's been painful,” Wingefor said. “But I still believe in what we do, I believe in my teams and the vision we set out. I also believe the public markets, if we do it right, are a fantastic place to finance your business and tap into both investors and the debt market.”
He adds, “But you need to execute well. If you do, it could be a fantastic platform to enable growth and to really have a competitive edge.”
For more, be sure to read our coverage on how disabled developers have been impacted by the mass layoffs sweeping the industry. You can also check out our interviews with other developers who have been hit with lost jobs.
Michael Cripe is a freelance contributor with IGN. He started writing in the industry in 2017 and is best known for his work at outlets such as The Pitch, The Escapist, OnlySP, and Gameranx.
Be sure to give him a follow on Twitter @MikeCripe.
