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News Embracer cancelled 29 unannounced games between July and December. Ongoing restructure resulted in cutting 1400 jobs; more cuts could be coming as i

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Sigh... Required watching if you're asking yourself what's going on in tech/gaming at the moment:

TLDW: the video game economy is doing fine - behaviour like this is all about shareholders and investors.

Gaming companies have started following the general tech strategy of ballooning during the hype, getting as much investor money as possible, and pre-emptively cutting on the way down to appear "responsible" to investors. Essentially blowing the hype bubble as big as they can, and making sure you start being """"responsible"""" in time before the crash so you can hold on to as much bubble money as you can. Embracer has been trying to follow Microsoft/Apple/Google's lead but apparently didn't understand that dance.

at least that's what i understood from the video
 
I will continue to shout from the rooftops FUCK EMBRACER GROUP, but from the title of this thread I half expected this to be a round up of everything lost because of the direct actions of the C-suite executives who should be fired instead of the 1400 employees. Their paychecks are more of a liability than anyone else involved in the tanking of this company.

I think I might take on that responsibility.
 
Embracer isn't the problem. It's our ridiculous culture of acquisitions + a bait and switch executed by a real world Victor Von Doom. Embracer is just the company left holding the bag.
 
oldpuck said:
Embracer isn't the problem. It's our ridiculous culture of acquisitions + a bait and switch executed by a real world Victor Von Doom. Embracer is just the company left holding the bag.
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I still maintain this whole ordeal smells way too much of the Cendant scandal which resulted in Sierra and Blizzard ending up with Vivendi and then ultimately with MS. Wouldn’t be surprised in the least if some level of fraud is eventually discovered.
 
sagadego20 said:
www.gamedeveloper.com

Embracer says it's looking out for shareholders after cutting almost 1,400 jobs

"Our overruling principle is to always maximize shareholder value in any given situation."
www.gamedeveloper.com www.gamedeveloper.com
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Well that's saying the quiet part out loud.

shoptroll said:
I still maintain this whole ordeal smells way too much of the Cendant scandal which resulted in Sierra and Blizzard ending up with Vivendi and then ultimately with MS. Wouldn’t be surprised in the least if some level of fraud is eventually discovered.
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Hell I'm shocked no official investigation has been opened up yet especially in light of the layoffs. Fraud, corruption, whatever, like yes interest rates were low but the rate of speed that they were making acquisitions is more suspicious than the amount of acquisitions made in total.
 
manfromthedam said:
TLDW: the video game economy is doing fine - behaviour like this is all about shareholders and investors.
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Except for Shareholder Chad, the overwhelming majority of folks here are more concerned for the livelihoods of thousands of workers in the industry who have been laid off during this contraction than they are about their stock holdings or about the concept of video games going away. This reckless behavior has resulted in an industry where those who have been put out of work can’t find new employment elsewhere, because every company in the industry is eliminating jobs rather than hiring. It seems callous in that light to reassure us that the “video game economy” is fine—who cares if the people who make it go are suffering, as long as shareholders and investors are happy?
 
Embracer quickly went from being the cool guy bringing back Timesplitters, to the douche who took Timesplitters to the back and shot it in the alley.
 
Embers said:
Except for Shareholder Chad, the overwhelming majority of folks here are more concerned for the livelihoods of thousands of workers in the industry who have been laid off during this contraction than they are about their stock holdings or about the concept of video games going away. This reckless behavior has resulted in an industry where those who have been put out of work can’t find new employment elsewhere, because every company in the industry is eliminating jobs rather than hiring. It seems callous in that light to reassure us that the “video game economy” is fine—who cares if the people who make it go are suffering, as long as shareholders and investors are happy?
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I'm afraid you've misunderstood. I was just sharing an interesting video about what the mechanics behind this puzzling behaviour are - video games are selling well, then why all the layoffs? That was the intention behind my comment.

As someone who works in the industry I'm of course aware of the terrible effects this has on folks' livelihoods - especially combined with how many people are required to relocate for jobs in AAA. Plenty of examples from Jason Schreier's books for instance, of people who move across the world for a job, only to be let go not too long after because of strategies like this.

For that reason I'll never relocate for work in the games industry. Very happy to see so many successful work from home studios springing up lately.

That's enough defending myself to an angry forum poster for today.
 
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Thunder84 said:
The title being cut off implies that Embracer got to OP too
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MontyPythonAndTheHolyGrail-9q1P3xC9-thumb.jpg
 
Embers said:
Except for Shareholder Chad, the overwhelming majority of folks here are more concerned for the livelihoods of thousands of workers in the industry who have been laid off during this contraction than they are about their stock holdings or about the concept of video games going away. This reckless behavior has resulted in an industry where those who have been put out of work can’t find new employment elsewhere, because every company in the industry is eliminating jobs rather than hiring. It seems callous in that light to reassure us that the “video game economy” is fine—who cares if the people who make it go are suffering, as long as shareholders and investors are happy?
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See, I would have found that quote you pulled to read differently. Because the video game economy is -- apparently -- fine, that's not so much part of the equation for why these things keep happening; it highlights the idea that this is only for the investors and stockholders and that it really doesn't need to be happening.

In this way, the statement wouldn't be trying to reassure people here of anything, but to highlight the real cause (hint: it's related to greed or something). One can further infer this by how @manfromthedam put "responsible" in scare quotes, then later in multi-scare quotes. The implication is that the company isn't being responsible at all (which I think we all knew a long time ago), even if it's played as such for investors.

Further, the indication is that this is widespread in the industry, which makes it a problem that a lot of companies are willfully creating (or lacking the foresight not to create). I might suggest that this leads to a video game economy that isn't, in actuality, fine. But I think the takeaway is meant to be that companies are creating this problem out of entirely selfish and misbegotten ambitions.

And we have it here:
sagadego20 said:
www.gamedeveloper.com

Embracer says it's looking out for shareholders after cutting almost 1,400 jobs

"Our overruling principle is to always maximize shareholder value in any given situation."
www.gamedeveloper.com www.gamedeveloper.com
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Beyond that, since you specifically called him out about this particular topic, I do recall this @Shareholder Chad fellow making a statement (a couple times) about liquidating his Microsoft stock because of their recent massive job cuts. It's possible these are empty, or otherwise performative, statements, of course, and I don't really follow the guy to know what all he says, but it's quite the juxtaposition and you did just randomly throw it out there.

I'd also be hesitant to insist that "the vast majority of folks here" are more concerned for the workers than about the concept of video games going away(?), though I wouldn't expect to find many voicing an opposition to that idea.
 
Embers said:
Except for Shareholder Chad, the overwhelming majority of folks here are more concerned for the livelihoods of thousands of workers in the industry who have been laid off during this contraction than they are about their stock holdings or about the concept of video games going away. This reckless behavior has resulted in an industry where those who have been put out of work can’t find new employment elsewhere, because every company in the industry is eliminating jobs rather than hiring. It seems callous in that light to reassure us that the “video game economy” is fine—who cares if the people who make it go are suffering, as long as shareholders and investors are happy?
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I don't think you know me or what I am truely about. So please do not call me out randomly.

Supreme Overlord said:
Beyond that, since you specifically called him out about this particular topic, I do recall this @Shareholder Chad fellow making a statement (a couple times) about liquidating his Microsoft stock because of their recent massive job cuts. It's possible these are empty, or otherwise performative, statements, of course, and I don't really follow the guy to know what all he says, but it's quite the juxtaposition and you did just randomly throw it out there.

I'd also be hesitant to insist that "the vast majority of folks here" are more concerned for the workers than about the concept of video games going away(?), though I wouldn't expect to find many voicing an opposition to that idea.
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Perhaps some reasoning is in order for why I did so. First off, I am NOT an activist investor and I typically separate business from passion. This time, I was extremely upset. Microsoft posted about how they hit a certain milestone in market cap then in less than 24 hours announced layoffs. I have a huge problem with this. Not only does it affect lives as mentioned but is a MAJOR SIGN of poor management and poor strategy. They are going all in on short term gains at the sacrifice of longer term stability. I believe this as both a human AND a (former) shareholder of Microsoft.

I've been doing this a very long time. You would be surprised how often making a socially conscience decision actually ends up the right monetary move when its all said and done. You fuck with your people, You aren't worth my dime.

Period. No if's, And's or but's.


Edit: As for my response to the topic at hand, Fuck Embracer. Good people will leave them and Good people will avoid them if this is how they treat their employees. See Activision. See Microsoft. time and time again. They will reap the consequence of their greed.
 
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Brofield said:
Well that's saying the quiet part out loud.
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Are you surprised? The modern stock market in the west is all about the short-term shareholder value, not about the workforce.

But IMO, what's happening at Embracer is nothing compared to what's happening at Unity right now.

Brofield said:
Hell I'm shocked no official investigation has been opened up yet especially in light of the layoffs. Fraud, corruption, whatever, like yes interest rates were low but the rate of speed that they were making acquisitions is more suspicious than the amount of acquisitions made in total.
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It's a publicly traded company. You have most historic info available directly on their web page. The purchase speed was made possible by the extremely rapid increase in stock price, and they mainly used stock (through stock dilutions) to purchase the new companies.

Now, when the stock price goes down-down-down instead, they can no longer use the stock price as a "financial tool" for anything. They needed actual extra money from investors, which they didn't get.
 
Two thoughts:

1. 29 games? Unless you're a massive publisher like Nintendo or EA, who the fuck has TWENTY-NINE games in the pipeline?

2. I'm merely an amateur when it comes to financial matters, but let's not be too quick to condemn investors or shareholders here. If you've got a pension, a 401k, or something other than "stick my money in a bank account and hope to earn 0.05% this year", odds are good that you're holding shares in something as well.
 
jariw said:
Are you surprised? The modern stock market in the west is all about the short-term shareholder value, not about the workforce.

But IMO, what's happening at Embracer is nothing compared to what's happening at Unity right now.



It's a publicly traded company. You have most historic info available directly on their web page. The purchase speed was made possible by the extremely rapid increase in stock price, and they mainly used stock (through stock dilutions) to purchase the new companies.

Now, when the stock price goes down-down-down instead, they can no longer use the stock price as a "financial tool" for anything. They needed actual extra money from investors, which they didn't get.
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Thats the frustrating thing. They aren't "creating value for shareholders". I once told an exec at a company once: "You want to create value for me as a stock holder, Invest in your people who then will invest in great works that will make me want to put my money your companies stock knowing that great works will come from motivated people". Nintendo and Iwata are the perfect example:

“If we reduce the number of employees for better short-term financial results, employee morale will decrease, and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world,” Iwata

I've tried to be positive influence in a terrible design but as we all know, Its throwing a small rock at a steel wall. I'll take every opportunity to keep throwing however.
 
It seems like when you sell your business to a bigger company, you screw your workforce
 
I fucking love mergers and acquisitions, so good. Not only do you ruin the common folks lives but you also make shareholders HAPPY.

DONT YOU GET WHAT'S AT STAKE HERE ? MORE FUCKING MONEY.
 
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