Embracer Group’s CEO, Lars Wingefors, has recognized the strong criticism aimed at him and his company after a period of major layoffs and studio closures. The recent restructuring of the company, involving a division into three separate entities, follows a rapid expansion phase that ultimately proved challenging to maintain.
We covered the big split of Embracer, but there’s more to the story. Speaking to GamesIndustry.biz, Wingefors expressed that the recent period has been difficult. He still believes in Embracer’s mission, the strength of his teams, and the potential of public markets for financing growth. However, he acknowledges the need for strong execution and takes responsibility for mistakes: “I’m sure I deserve a lot of criticism, but I don’t think my team or companies deserve all the criticism. I could take a lot of that blame myself.”
Public attention on Embracer has increased over the last 18 months due to widespread job cuts in the gaming industry. Embracer’s active buying of companies over the past six years and a failed $2 billion investment deal have put it under a particularly harsh spotlight. In February, Kinda Funny CEO Greg Miller mentioned his negative feelings about Embracer during his DICE Awards presentation.
“There are two phrases everyone in this room – everyone in video games – never wants to hear. Number one is people online are mad and number 2 is the Embracer Group is here. They’ve really f***ed this place up haven’t they? it’s f***ing crazy.”
Greg Miller
It’s hard to be a leader of any team or company; it means that all the good that happens is yours to take, but all the bad is also yours to shoulder. Your decisions influence what happens, so you cannot say much when things go wrong or right because you need to be in control. Embracer really went through it, and it seems like no one was on the CEO’s team.
“It’s been painful. But I still believe in what we do, I believe in my teams and the vision we set out. I also believe the public markets, if we do it right, are a fantastic place to finance your business and tap into both investors and the debt market. But you need to execute well. If you do, it could be a fantastic platform to enable growth and to really have a competitive edge.”
Lars Wingefors
Wingefors acknowledged the necessity of adjusting to evolving conditions. He affirmed that the company’s executives continue to support Embracer’s mission while recognizing the challenging adjustments ahead. Wingefors does not specify particular errors but mentions a “lengthy list” of choices he and Embracer could have handled differently.
Martin Wingefors confirmed that the acquisition of Asmodee for €2.75 billion contributed to the company’s first-ever debt. He mentioned some regret about the timing of the acquisition but still believes in Asmodee’s long-term value. It’s too early to determine the ultimate success of this strategy.
We’ll have to wait and see what Embracer does next, but now that it’s split in three, it may not have much else to do.
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