Enterprise

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During its financial presentation for Q2 2021/2022, Embracer Group announced it has 25 AAA games due out in the next five years.  “Currently we have a pipeline that consists of 25 AAA games for premium PC and console,” Embracer Group chief executive Lars Wingefors announced. “They all have notable or significant marketing budgets and are expected to become multi-million unit sellers. Each game will have at least 100 game developers at peak, but normally a lot more — up to 250.”

With developers and publishers that include Koch Media, THQ Nordic and Gearbox Software under its umbrella, Embracer Group is preparing for a busy few years. Releasing 25 AAA games sounds like a lot, but compared to its works in development, that isn’t such a big number.

“Overall we’re reporting that we have close to 200 games under development at the end of the quarter,” says Wingefors. “As of today we have 86 internal game studios and are engaging more than 9,000 people on a daily basis.”

The Swedish gaming megapublisher is pursuing a strategy of making a lot of games to make a lot of money, and that only feels out of place because so many other publishers seem afraid to do the same.

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Embracer embraces even more studios

Embracer isn’t planning to stop there. Having added 37 new companies in the last 12 months, it plans to add another 37 in the next 12.

“We will never force a deal for the sake of making a deal, but rather let it take adequate time,” according to the presentation. “It is no different from the quality comes first approach in making games. In the past 12 months, we have made 37 acquisitions and expect to do a similar amount of transactions over the coming 12 months. We currently have a large range of active processes and dialogues, including a good number of signed exclusive term sheets.”

As is, Embracer has quietly become a large player in the gaming world. Acquiring 37 more studios would put it at an impressive 123. So, if you’re a developer looking to get bought out…. I know a guy.

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