Embracer CEO and co-founder Lars Wingefors said, “Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company.

“After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.”

Gearbox Entertainment CEO Randy Pitchford added, ”As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment.

“My primary interest is always Gearbox, especially our talent and customers. I want to personally assure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best they can possibly be.”

Take-Two is no stranger to working with Gearbox, having published the Borderlands series, Tiny Tina’s Wonderlands, the underwhelming Battleborn and long-in-development Duke Nukem Forever under its 2K Games label. Gearbox’s sale follows that of Saber Interactive, recently acquired by a private investor group, and nearly a year of studio closures and layoffs at Embracer.

As for the future of Gearbox, it’s reportedly working on Borderlands 4, with leadership rumored to have faced a reshuffling, and Tiny Tina’s Wonderlands 2, which allegedly saw a “soft” reboot. Stay tuned for more details and potential announcements in the coming months.

Two sources told the website that CEO and co-founder Randy Pitchford held a town hall meeting with staff this week, announcing a decision was reached regarding the studio’s future. There will reportedly be more details next month. While Embracer didn’t respond to comments about the sale, Pitchford told Kotaku, “I’m delighted that what we might be up to is interesting enough to people that you want to make a story about us for your readers.

“I’m honored and humbled that our company is a topic of rumor, speculation, and discussion. As always, we will be thrilled to share whenever we have projects to announce or news to share as we work hard towards our mission to entertain the world.”

Rumors about the Embracer Group selling Gearbox Entertainment began in September 2023. There was reported interest from “international gaming groups”, but internally, the developer told employees that it could be transferred, go independent and so on. It noted the “best case” to be staying with Embracer, but it ultimately seems that won’t happen. Stay tuned for further announcements later this month.

Replying to a tweet about Borderlands developer Gearbox being next, Schreier responded, “Stay tuned.” Reports emerged in September 2023 about Embracer potentially selling the company after a $2 billion deal that fell through, leading to mass layoffs and studio closures. An internal email from Gearbox’s chief communications officer, Dan Hewitt, followed shortly after, mentioning the possibility of the company going independent.

Interestingly, Schreier reveals that Volition of Saints Row fame was given the same opportunity, but the deal “fell through.” The developer is one of the more high-profile shutdowns by Embracer, though several former employees have since reformed as Shapeshifter Games.

As for Gearbox potentially going private, the company hasn’t officially discussed the same, so stay tuned for further developments, possibly soon.

Stay tuned

— Jason Schreier (@jasonschreier) February 29, 2024

They actually were but it fell through

— Jason Schreier (@jasonschreier) February 29, 2024

The story of The Lord of the Rings: Return to Moria revolves around Dwarves being summoned to the Misty Mountains by Lord Gimli Lockbearer. Tasked with reclaiming the lost treasure hidden away in the Dwarven homeland of Moria, the group sets out for Khazad-dûm.

Players are able to create their own custom Dwarf before heading into Moria. The game will feature a mix of randomly-generated environments, as well as hand-crafted environments based recognisable landmarks from the books. The game features co-op support for up to 8 players on PC.

Previously, a gameplay video gave us our best look at the game before its release, showing off some early traversal and survival gameplay from The Lord of the Rings: Return to Moria.

While out on PC, the PS5 version has been pushed back for release on December 5. There is also a version for Xbox Series X/S planned for release in early 2024.

Interestingly, several “unannounced notable titles” are still set to be revealed this fiscal year. Perhaps we’ll see some of them in the coming weeks, either at the PlayStation Showcase on May 24th or the Summer Game Fest Showcase on June 8th. Remnant 2 is already confirmed for Summer 2023 and could receive a release date in the coming weeks.

Warhammer 40,000: Space Marine 2 received new gameplay footage at last year’s The Game Awards, so if it’s still coming this year, we may see updates on it sooner than later. Payday 3’s gameplay will be revealed this Summer and has been wish-listed by over one million players on Steam. Its platforms have yet to be confirmed, but it is coming to consoles and PC. Stay tuned for more updates.

CEO Lars Wingefors stated, “I am happy to state that the game has reached a sell-out of well over two million units. It is rewarding to see that the decision to give [Dambuster Studios] time to polish the game has paid off.”

The long-awaited hack-and-slash title was released on April 21st and sold one million copies in three days. It was first announced in 2014 under Yager Development and would shift to Sumo Digital in 2015. The latter was replaced in 2019 by Dambuster Studios, Deep Silver’s internal studio, which worked on Homefront: The Revolution.

Dead Island 2 is available for Xbox One, PS4, PS5, Xbox Series X/S and PC. Check out our review for more details. It’s slated to receive two DLC story chapters which add new enemies, weapons and more as part of its Expansion Pass. Stay tuned in the meantime for more details.

In the latest Annual Group Meeting for the Embracer Group, Pitchford said, “Gearbox Software achieved a major victory this past year with the launch of a new franchise, Tiny Tina’s Wonderlands. Wonderlands shattered all of our target expectations, both critically and commercially, and I’m thrilled to report that in addition to great financial rewards from this victory that will be coming our way in the coming quarters, we have established a firm beachhead.

“We now clearly have a new franchise on our hands, with future experiences already under development at Gearbox.” It’s unclear whether this means a sequel is in development or more DLC will release. The first Season Pass is already complete and adds four Mirrors of Mystery along with new cosmetics, weapons, and a new class, the Blightcaller. Time will tell, so stay tuned.

In the meantime, Gearbox will release New Tales from the Borderlands on October 21st for Xbox Series X/S, PS4, PS5, PC, and Nintendo Switch. It follows three new characters – Anu, Octavio, and Fran – in Promethea on Pandora, battling against corporate greed, a vault monster and an invasion. For more details and gameplay, head here.

It reportedly wants to “do what Cyberpunk 2077 couldn’t,” presumably in the immersive sim department. As Grubb notes though, “We’ll see if that happens. It’s so early. Who knows what that will turn into?” However, if true, a conversation around such a thing had “no possibility to even begin” under the current Square Enix.

It’s a shame, especially considering the cliffhanger that Deus Ex: Mankind Divided ended on. The latter, along with its predecessor Human Revolution, sold more than 12 million units so there is interest in the franchise. Where it ultimately goes remains to be seen and it may be a while before a follow-up is announced. Stay tuned for more details in the meantime.

The Embracer Group has been acquiring studios for a while now with The Gearbox Entertainment Company and Aspyr Media being the most recent. Nevertheless, it’s looking to continue this strategy by raising more than $890 million via 36 million new Class B shares at SEK 210 ($24.71) per share. As the publisher notes (via GamesIndustry.biz), the amount will be used to “further strengthen the company’s financial position and, of course, continue its ongoing acquisition strategy.”

The company is evaluating a “growing number of potential near-term acquisition targets.” Currently, The Embracer Group has more than 70 premium development projects that will be completed in the next financial year. Many are expected to release in the latter half.

In the meantime, major releases like Biomutant are coming up while early access titles like Valheim and Satisfactory continue to perform well. Aspyr Media is also worth keeping an eye on since it’s working on a high-profile title with a budget of $70 million (rumored to be a reboot of Star Wars: Knights of the Old Republic). As for what the future holds, stay tuned for more details in the coming months.