Embracer Group, the parent company of developers such as Eidos Montreal and Crystal Dynamics, has once again made headlines with reports of layoffs and game cancellations. Following through on its warning of impending cuts, Embracer has reportedly cancelled an upcoming Deus Ex game from Eidos Montreal, leading to a number of employees being laid off. The unannounced Deus Ex game was slated to enter production this year, but details about the project remain scarce. Instead, Eidos Montreal will now focus on creating an “original franchise.” This news comes as a blow to fans of the popular cyberpunk series, especially following Embracer’s acquisition of the Deus Ex franchise from Square Enix in 2022.
The reported layoffs were confirmed by Eidos Montreal, which revealed that 97 employees from various disciplines will be affected. The company cited the “global economic context,” as well as general video game industry conditions and Embracer’s previously announced restructuring plan as reasons for the cuts. This latest round of layoffs comes after Embracer’s decision to cancel games, lay off staff, and close studios in June 2023, following the loss of a significant deal.
The impact of Embracer’s actions extends beyond its own studios, as the video game industry as a whole has seen a wave of layoffs in recent times. Microsoft recently cut 1,900 positions from its gaming team, while Riot Games, the developer behind League of Legends, also announced the sunsetting of its internal development division, resulting in hundreds of layoffs.
Opinions on the situation have been varied, with some expressing disappointment and concern over the state of the industry. Elias Toufexis, the voice actor for the main character Adam Jensen in Deus Ex: Mankind Divided, took to social media to share his reaction to the news. In a tweet, Toufexis expressed his frustration for the employees who were laid off, highlighting the challenges faced by the industry as a whole.
As the industry continues to navigate these challenging times, the impact of Embracer’s decisions and the broader trend of layoffs and studio closures will undoubtedly continue to be felt across the gaming community.