The Embracer Group has announced the partial sale of Saber Interactive, currently developing the highly anticipated remake of Star Wars: Knights of the Old Republic. Several assets of Saber Interactive were sold for $247 million. Embracer Group, over the last few years, has been steadily acquiring game development firms such as Eidos Montreal, Crystal Dynamics, and Limited Run Games, thereby increasing its portfolio to a staggering 110 game development firms by April 2022. The company’s aggressive expansion strategy included the acquisition of Saber Interactive in 2020, which went on to become one of Embracer’s 12 primary sectors, thanks to its several subsidiaries.
Some of these subsidiaries include 3D Realms, Demiurge, Tripware Interactive, Aspyr, and several Saber-branded studios located globally. However, rumors started circulating about three years later that Embracer was contemplating selling the KOTOR remake developer for $500 million. This sell-off is one of the many cost-cutting measures that Embracer has implemented in the last year.
On March 14, Embracer confirmed the sale of Saber Interactive and selected subsidiaries to Beacon Interactive for $247 million. Beacon Interactive is managed by Saber’s co-founder, Matthew Karch. Saber will take over half of its studios when it joins Beacon, with the remaining staying with Embracer. Embracer’s “win-win” plan to partially divest Saber Interactive intends to improve cash flow and help the company reduce debt. Embracer has laid off employees and shut down studios to “maximize shareholder value” over the past year.
Post-Sale Saber Interactive: A Brief Overview
Saber Interactive Subsidiaries acquired by Beacon Interactive from Embracer Group:
- All Saber-branded studios
- 3D Realms
- DIGIC
- Fractured Byte
- Mad Head Games
- New World Interactive
- Nimble Giant Entertainment
- Sandbox Strategies
- Slipgate Ironworks
Saber Interactive Subsidiaries retained by Embracer Group:
- 34BigThings
- 4A Games
- Aspyr
- Beamdog
- Demiurge Studios
- Shiver
- Snapshot Games
- Tripwire Interactive
- Tuxedo Labs
- Zen Studios
Embracer will cease all operations in Russia, and all Russian employees will join local companies working exclusively with Beacon Interactive. Saber Interactive, along with retaining select studios post-sale, also has the opportunity to acquire 4A Games and Zen Studios in future.
The outbound studios are taking 38 ongoing projects, as well as proprietary technologies like engines and game tools. The studios staying with Embracer are working on 14 projects, including the upcoming Metro: Awakening VR game by 4A. News about the departure of Borderlands developer Gearbox Software from the Embracer Group is also floating, just three years after their acquisition in 2021. In a bid to cut costs, Embracer has not only been selling select holdings since June 2023 but has also been closing studios, like the Saint’s Row developer Volition in August 2023.