Embracer is like that image of the Grim Reaper going door-to-door with its subsidiaries. According to a reputable German podcast’s latest episode, Piranha Bytes is reportedly facing closure due to a decision by Embracer, and most of their staff is already gone.
This news comes by way of a recent episode of The Pod, a well-known German podcast with strong ties to the gaming industry. Information shared within the podcast reveals that German studio Piranha Bytes, the team behind the fan-favorite Gothic series and the sci-fi RPG Elex series, is on the brink of closure.
While the episode is in German, Reddit user u/Jyllian_ summarized the biggest pieces of information in a post on the worldofgothic subreddit:
What is going on at Piranha Bytes? Are they in financial trouble?
byu/Jyllian_ inworldofgothic
According to the post, the closure process has been in action since November of last year. Embracer is cutting the studio for cost-saving purposes after their massive $2 billion deal fell through last May. Embracer reportedly doesn’t have much faith in Piranha Bytes’ next project being profitable, though they’re giving the team an opportunity to pitch themselves to other publishers. The hosts of the podcast episode are not very optimistic about the team succeeding, however.
The entirety of Piranha Bytes’ staff has also been laid off already, as members of The Pod have confirmed seeing the termination letter. What’s left is effectively a skeleton crew, people left over to look for a last lifeline before the studio shuts down for good. It’s a sad tale, one we’ve seen before.
German gaming news site GameStar has also confirmed these reports separately with their own reputable sources. According to them, the dismissal process for employees is not finished. Even so, all work on a new title has ceased entirely. They credit the German Dismissal Protection Act with the prolonging of the closing process, as companies are required to notify employees of termination well in advance of their actual end date.
What’s left to say about Embracer? In the last three years, they’ve climbed the ranks of most despised entities in the video game industry. Since their deal flopped, they’ve closed beloved studios like Volition and canceled anticipated projects like the TimeSplitters reboot. The studios they haven’t shut down have faced serious layoffs, including Crystal Dynamics and 3D Realms. Hundreds of livelihoods have been put at risk, all thanks to a massive deal made by people with no real connection to the developers involved. Corporate missteps have repeatedly stomped on the passion of the individuals behind well-loved titles.
We’ll be sure to update readers when we receive official confirmation of Piranha Bytes’ closure. For the time being, it seems increasingly clear that the studio is dead in the water through no fault of their own.
Sources: gamespodcast.de via Reddit, GameStar
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