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coolbeans said:
Ryuu96 said:

Usually it wouldn't be a concern but I am suspicious of Embracer Group now, their growth is absolutely insane, in 3 years they've acquired 46 studios, I believe they're now the biggest publisher in the world in terms of studio count, their market cap is only $1.5bn off Ubisoft's in the span of 3 years of active growth, with multiple large scale acquisitions planned (including publishers) they will easily pass it.

The rate of growth is extremely suspicious, potentially dangerous, if Embracer goes down it would be devastating to the industry but I don't think that will happen anytime soon, I personally think they're either going to create their own subscription service (rival to Game Pass) or cash out to a major player (sell to Amazon, Google or Tencent).

It has been interesting to watch them over the years and I don't see them slowing down at all, if anything they're going to speed up in acquisitions.

Nah.  While it'll have tangible ripple effects for a time, them going belly-up wouldn't be that bad overall.  Like with THQ OG, it'll just serve as a lesson for more competent investors to consider when they buy Nordic's assets during a liquidation sale.

I mean, Embracer Group already owns 58 studios with no signs of slowing down, taking a quick look, THQ suffered financial troubles around 2010, at that point in time they owned only 11 studios, until their closure in 2013 they took down 8 studios with them and sold only 3.

Now imagine that on the scale of Embracer Group when they're done with acquiring...Dozens of studios would be straight up closed, for a number of reasons even good studios aren't acquired sometimes, a lot of the time publishers would rather just have the IPs.

And they'd be no spinning off studios from owned to independent like Square Enix did with IO Interactive when they couldn't find a buyer because that is extra costs. If we applied that % of closure/sold of THQ to Embracer Group's current count, that'd be around 42 studios closed (of course this isn't accurate but just to give a general idea applying the same THQ logic to Embracer).

And they're in talks with over a hundred studios for acquisitions, including a dozen large scale ones.

Last edited by Ryuu96 - on 20 November 2020