Saber Interactive, the team currently working on the long-awaited Star Wars: Knights of the Old Republic remake, is the latest company to be affected by Embracer Group and its decisions following the failure of a $2 billion deal last year. The developer is being sold for $500 million to become a privately owned studio.
This story was reported by industry insider Jason Schreier at Bloomberg, who shared it earlier this morning. According to the article, Saber Interactive will become a privately owned company and employ around 3,500 staff members. They will continue to develop the KOTOR remake that was previously being worked on by Aspyr Media before it switched teams in 2022.
This move from Embracer comes as part of a larger effort to cut company costs. Beginning in late summer of last year, the Swedish holding group shuttered several studios and laid off hundreds of workers in an attempt to reduce expenses following a failed multi-billion-dollar partnership with Saudi Arabia in May of 2023.
Prior to the deal’s falling through, Embracer had been buying up developer after developer in an attempt to increase their overall share of the video game industry, including many household names like Volition, Eidos Montreal, and Crystal Dynamics. Saber Interactive themselves joined Embracer in 2020 after a $525 million purchase.
Gearbox Studio may also be facing a similar opportunity according to a recent tweet from Schreier:
Stay tuned
— Jason Schreier (@jasonschreier) February 29, 2024
We previously reported that Embracer Group had plans to sell Gearbox back in September of last year. Since then, we’ve heard no news of any progress in Embracer’s plans, but judging by this Saber deal, there’s a good chance that Gearbox is soon to follow.
According to Bloomberg’s sources, Saber will have the option to bring along other Embracer subsidiaries if they so choose. It’s clear that Embracer is just trying to lose as much weight as they can at this point in an attempt to stabilize and recoup their financials. There’s no word yet on whether Saber intends to carry any studios with them.
It’s been a rocky year so far for video game companies. Embracer’s had their own fair share of disappointing headlines already, and we’re certain we’ll see more of them. They’ve quickly become a despised entity in the interactive entertainment sphere, a reputation that won’t be leaving them any time soon.
We’ll keep our readers updated as the story progresses.
Source: Bloomberg
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