Games companies expanded like crazy due to low interest rates and high demand for games during the pandemic. Now interest rates are going up and people go outside again.
In this case, and for a lot of other studios, Embracer went on a buying spree some time ago, betting that a deal worth $2 billion with Saudis would go through. It didn’t, and now they are forcing cost cuts across all studios they own.
What is going on here? Why are so many companies laying off their employees??
Games companies expanded like crazy due to low interest rates and high demand for games during the pandemic. Now interest rates are going up and people go outside again.
In this case, and for a lot of other studios, Embracer went on a buying spree some time ago, betting that a deal worth $2 billion with Saudis would go through. It didn’t, and now they are forcing cost cuts across all studios they own.