Embracer Group Shelves Deus Ex Video Game Amid Layoffs At Eidos Montreal
Portfolio Pulse from Franca Quarneti
Embracer Group AB has canceled a Deus Ex game in development and laid off 97 staff at Eidos Montreal. The studio will shift focus to an original franchise. This is part of a larger restructuring at Embracer, which has also affected other studios such as Volition and Free Radical Design. The layoffs and cancellations follow a failed $2 billion deal with Savvy Games Group. Embracer acquired Eidos Montreal from Square Enix Holdings in 2022 but has not commented on the Deus Ex cancellation.
January 30, 2024 | 4:43 pm
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NEGATIVE IMPACT
Embracer Group AB has canceled a major game project and is undergoing a significant restructuring, including layoffs and potential studio closures.
The cancellation of a major game and layoffs indicate operational and financial challenges, which could negatively impact investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Square Enix Holdings, former owner of Eidos Montreal, is not directly affected by the layoffs and game cancellation as the studio is now under Embracer Group.
Since Square Enix sold Eidos Montreal to Embracer Group in 2022, the current restructuring and project cancellations do not directly impact Square Enix's operations or financials.
CONFIDENCE 80
IMPORTANCE 30
RELEVANCE 20