Amid Layoffs, Embracer Group Touts Good Performance Of 'Lord of the Rings' IP

TV & Film

Aug 21

Image Source: Everyeye

The Embracer Group is primarily known for video games, but also owns a big chunk of The Lord of the Rings rights after shelling out $395 million for Middle Earth Enterprises. But The Lord of The Rings IP hasn’t been their only big purchase; in the last three years, they’ve walked away with big names like Dark Horse Media, Vertigo Games, and Square Enix Europe (Tomb Raider, Championship Manager).

Despite all these acquisitions, Embracer announced a comprehensive restructuring program in June 2023. They aim to reduce overheads by 10% by laying off staff, selling off unwanted assets, and removing underperforming titles from production.

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A lot of Embracer’s focus is on streamlining their internal processes and improving the selection of games for development so that it is more data-driven. This might seem like a good idea, but it may also mean that games that are unusual or ambitious may get dropped. Let's not forget how many times Pokémon Red and Blue was rejected by Nintendo.

For the moment, the Swedish-based company reports that its tactics appear to be paying off. Sales grew by 50% across the whole of the Embracer Group over the last quarter, and turnover is up 47%. The success of The Lord of the Rings: Return to Moria PC game had a big impact on these figures, as well as a number of other LOTR products released by studios under the Embracer Group. Many of the big Hollywood studios will be looking at these figures enviously. It’s reassuring, as Embracer has big ambitions for The Lord of the Rings, but with the rights being split between four companies, they may encounter difficulties.

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