Amazon’s MMORPG is just the beginning

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The Embracer Group has had turbulent years. However, after extensive layoffs, studio closures, project cancellations and a restructuring of the entire group, there may be a light at the end of the tunnel.

What fuels the optimism? Actually, according to the figures in the recently published annual report for the first quarter of the 2024 financial year (via embracer.com), this is not the case. Although the results are in line with expectations, the targeted sales forecasts have not been achieved.

The main reason for this: Between April and June 2024, there were hardly any releases, while in the comparable quarter of 2023, Dead Island 2 was a hit. However, CEO Lars Wingefors is optimistic that the situation will noticeably improve when promising titles such as Kingdom Come: Deliverance 2, Disney Epic Mickey: Rebrushed, Titan Quest 2 and the Gothic 1 Remake are released.

Fans of medieval RPGs should keep an eye on Kingdom Come: Deliverance 2 – here is the trailer:

Trailer of the open-world action RPG Kingdom Come Deliverance 2 Saints and Sinners on Steam

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Strong focus on Middle Earth

What measures are planned? In the financial report, Embracer officials announced a stronger focus on the licenses of “Middle Earth Enterprises”, especially “The Lord of the Rings” and “The Hobbit”. Current projects such as the MMORPG from Amazon Games or the animated film “The Lord of the Rings: The War of the Rohirrim” are only the beginning.

A long-term partnership with Warner Bros. Pictures and New Line Cinema is ensuring the expansion of the franchise for further film projects. On the other hand, several game concepts and prototypes are currently going through a greenlight process in order to find further exciting game projects for the Lord of the Rings franchise.

In addition, Embracer is continuing to consolidate by splitting the group into three independent, listed units:

  • Asmodee Group (Board games, trading cards, tabletop)
  • Coffee Stain & Friends (PC, mobile and console games with small to medium (double-A) budget) – this unit includes THQ Nordic, Black Forest Games, HandyGames and the remnants of Piranha Bytes
  • Middle Earth Enterprises & Friends (here are the most important brands for blockbuster productions: Lord of the Rings, Tomb Raider, Metro, Dead Island or Kingdom Come: Deliverance) – this unit includes Plaion, Crystal Dynamics, Eidos Montreal and Fishlabs

    • First, Asmodee is to split off before the end of the current fiscal year, i.e. by March 2025. Coffee Stain & Friends is to follow in the course of 2025. If you want to retrace Embracer’s entire ordeal, take a look here: Group speculates, has to lay off 1,400 employees and who is to blame? The war and Covid

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