Crystal Dynamics Claims Development Of New ‘Tomb Raider’ Will Not Be Affected By Layoffs And Restructuring At Parent Company Embracer Group
John F. Trent
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Following the announcement of layoffs and restructuring at Embracer Group, Crystal Dynamics, a subsidiary of Embracer Group, assured consumers that development of Tomb Raider and Perfect Dark is not impacted by the layoffs and restructuring.
Shadow of the Tomb Raider (2018), Square Enix
Embracer Group CEO Lars Wingefors shared an open letter announcing the company would be undergoing a massive restructuring program in order to make them “leaner, stronger and a more focused, self-sufficient company.”
This restructure is supposed to take the company from their “current heavy-investment-mode to a highly cash-flow generative business this year.” It is also supposed to enable them to meet the worsening economy and market reality as a strong company and it will fundamentally change our prioritization of growth with raised capital towards optimization and growth based on our own cashflows.”
Amazon Games and Crystal Dynamics have reached an agreement under which Crystal Dynamics will develop a new multiplatform Tomb Raider title, with Amazon Games providing full support and publishing the game globally.
RELATED: Amazon Games To Develop New ‘Tomb Raider’ Game With Crystal Dynamics
This restructure includes layoffs with Wingefors noting, “Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this.”
He added, “It is painful to see talented team members leave. Our people are what make up the very fabric of Embracer. I understand and respect that many of you will be worried about your own position and I don’t have all the answers to all questions.”
Shadow of the Tomb Raider (2018), Square Enix
While the company is making cuts, Wingefors also detailed, ” It’s important to note that while we are removing roles in some companies, we will continue to hire in others. We know, understand and respect that this is a challenging time for every person impacted. For me communication and transparency are key, but it’s also an increasingly difficult challenge in matters such as this program.”
Not only will they be making cuts, but entire studios are on the chopping block with Wingefors outlining, “The actions will include, but not be limited to, closing or divestments of some studios and the termination or pausing of some ongoing game development projects.”
He continued, “It will also include decreased spending on non-development costs such as overhead and other operating expenses. We will reduce third party publishing and put greater focus on internal IP and increase external funding of large-budget games.”
Rise of the Tomb Raider (2016), Square Enix
The layoffs come as part of the first of a three phase plan to restructure the company. This first phase was described as Wingefors as one that “mainly targets cost savings across the group.” He noted this phase went into effect today. The second phase also went into effect immediately, but it’s unclear what it entails other than that it requires “further analysis to determine specific actions.”
The third phase also appears that it will include layoffs as he notes it will “focus on internal consolidation, further resource utilization and more synergies across the Group.”
Shadow of the Tomb Raider (2018), Square Enix
Crystal Dynamics made it clear that the in-development Tomb Raider game, Tomb Raider: Perfect Dark, is not affected by the restructuring.
The company posted to Twitter, “Thanks to everyone for reaching out and asking about the most recent news by our parent company Embracer Group regarding the restructuring plans. We want to reassure fans that there will be no impact to our continuing efforts with our partners at The Initiative on Perfect Dark, or our next Tomb Raider title being developed in collaboration with Amazon Games.
Crystal Dynamics Twitter
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The new Tomb Raider game was announced back in December with a press release explaining it would be “a single-player, narrative-driven adventure that continues Lara Croft’s story in the Tomb Raider series.”
The press release also added, “It includes all the elements that have made Tomb Raider one of the most revered franchises in gaming, giving players control of the confident and multidimensional hero Lara Croft in an environment that rewards exploration and creative pathfinding, with mind-bending puzzles to solve, and a wide variety of enemies to face and overcome.”
Both Crystal Dynamics and Amazon Games promised the new game would “take storytelling to the next level, in the biggest, most expansive Tomb Raider game to date.”
Shadow of the Tomb Raider (2018), Square Enix
What do you make of Crystal Dynamics noting that development of Tomb Raider would not be affected by the layoffs and restructuring? What do you make of the layoffs and restructuring?
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