Embracer must focus on quality not quantity if it wants its bets to pay off | Opinion

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It was too good to be true. The Embracer Group under the leadership of its CEO Lars Wingefors was set to be the most successful European video games publisher, rivalling the giants in the U.S. Years of numerous acquisitions of video game studios, distributors and publishers had made Embracer into a powerhouse in the industry.

But now, after its failed partnership deal with an unnamed company, coupled with the collapse of its share price (down by as much as 40% in one day) when that deal fell through, many are now questioning what is the long-term strategy for the company? Is the model of buying studio after studio, funded by loans, a secure one if revenue growth cannot keep up?

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