As the popularity of video games continues to increase along with the number of people needed to make those games, the industry has become big business for investors. With the value of many of the industries top companies such as Microsoft, EA, and Bandai Namco reaching well into the billions, it's easy to see why groups of investors might want to get in on the action. A Swedish games holding company known as Embracer Group has been acquiring game studios over the past couple years. Its most recent shopping spree has added another 8 studios to its catalog including the classic developer 3D Realms.
Formerly known as THQ Nordic AB, Embracer Group purchased its 8 new studios, including 3D Realms and Ghost Ship Games, for a total of approximately SEK 2.7 billion ($313 million USD), bringing its total number of IPs to over 240. This amount of money is subject to change as the price of the recently acquired companies could rise depending on their performance. If specific goals pertaining to the success of the studios are met, the price paid by Embracer Group for these recent acquisitions could grow by an additional SEK 2 billion ($232 million USD) above the previously stated figure. While this is a substantial amount of money paid out by the Swedish company, it hopes to offset these purchases through sales estimated at $230 to $348 million over the upcoming fiscal year.
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The complete list of acquired studios can be seen below.
- Deca Games
- 3D Realms
- Crazy Labs
- Ghost Ship Games
- DigixArt
- Easy Trigger
- Grimfrost
- Slipgate Ironworks
The acquisition of these studios are a big deal for the gaming industry as they include some popular titles. Founded back in the 1980s, 3D Realms is a big pickup for Embracer Group. Known for its involvement in the creation of the Duke Nukem series, 3D Realms has been involved in a number of recent projects such as last year's Ghostrunner. Some of the other notable studios part of Embracer Group's recent purchases include Ghost Ship Games, the developer of Deep Rock Galactic, a 1-4 player FPS focused on PvE combat while exploring cave systems. However, the scope of this new deal stretches beyond console and PC gaming as Crazy Labs is a successful publisher of "hyper-causal" mobile games.
This isn't the first time that Embracer Group has decided to acquire new game studios. One of its more recent and largest acquisitions was Gearbox Entertainment Company, the developer behind the Borderlands games. The Swedish company acquired the studio in a deal valued for approximately $1.3 billion. In addition, the company owns studios such as 4A Games, the developer of the Metro series, along with Gunfire Games, the maker of Darksiders 3.
According to the CEO of Embracer Group Lars Wingefors, this most recent acquisition adds another 500 employees to the company. With so many IPs in the Swedish games company's possession, it will be interesting to see what is in store for these newly acquired studios moving forward. Doubtlessly, fans of 3D Realms and specifically the Duke Nukem games are hoping that this deal will reignite the franchise.
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Source: Embracer Group, IGN