Embracer yard sale

Good Morning. Today, Apple is expected to reveal their latest phone — the iPhone 15. You can catch the action on live stream, starting at 10 PT / 1 ET.

When Newzoo’s gamer report came out earlier this year, it basically stated that half of the world’s population are ‘gamers’. The only way this is possible is through counting up players of casual mobile games.

So, here’s the question: do you consider ‘candy crushers’ to be gamers? Poll down below.

— Derek Neville, Jason Liu

MAIN QUEST: Gearbox up for sale

Holding company Embracer Group is reportedly looking to sell Gearbox Entertainment as part of its ongoing restructuring following its failed $2 billion deal with Saudi-backed Savvy Games Group.

Main Characters:
Embracer Group is a video game and entertainment holding company with 12 direct subsidiaries, including Gearbox, THQ Nordic, and Plaion.

Gearbox Entertainment is the parent company of Gearbox Software, the developer best known for the Borderlands series. Gearbox was acquired by the Embracer Group in 2021 for $1.3 billion.

Background Info:
Embracer Group has grown its portfolio significantly over the past few years, spending over $8 Billion on acquisitions, including Middle-earth Enterprises (Lord of the Rings), Crystal Dynamics (Tomb Raider), and Gearbox Entertainment.

In March, news broke that a $2 billion deal had fallen through after Saudi-backed Savvy Games pulled out last minute. The failed deal forced Embracer to bring down its earnings projections and saw the company’s stock plummet.

In June, Embracer announced comprehensive restructuring with the goal of cutting costs and overhead by approximately $1.4 billion. To reach this goal they announced they would be closing studios, terminating projects, and laying off employees.

What you need to know:
Reuters reports that Embracer is considering its options when it comes to Gearbox and is working with Goldman Sachs and Aream & Co to explore a sale following third-party interest. News of the potential sale saw the company’s stock jump 5%.

It’s not a sure thing that Gearbox will be sold, as the company could still remain under Embracer or go independent.

Digging Deeper:
The potential sale of Gearbox is just the latest in Embracer’s cost-cutting efforts. In August, Embracer made the decision to close Volition, developers of the Saints Row series, as well as shutting down Campfire Cabal. Regardless of how the Gearbox move shakes out, it is unlikely that this is will be their last move.

With ownership of 900+ IPs, there are major franchises that could still be impacted, such as Tomb Raider, Deus Ex, Destroy All Humans!, and the upcoming Little Nightmares II.

HUD

• 🏎️ Nintendo will end content updates for Mario Kart Tour come October. With the last of Mario Kart 8’s content updates also on the horizon, could Mario Kart 9 be on the way?

• 🎧 Headset company Epos Gaming is being shut down down by its parent company Demant as the hearing aid company looks to move out of the gaming market.

• 💳 Microsoft and Barclays have teamed up to introduce the Xbox Mastercard, exclusive to Xbox Insiders. Cardmembers can redeem earned points in the Xbox store.

MAJOR W

• 🕷 Dbrand is at it again with Spider-Man inspired custom plates for the PS5. Will Sony once again send a cease & desist?

• 🕹 New Nintendo controller patent could be the solution to stick drift (we hope).

• 🍯 With more characters coming into the public domain, Winnie the Pooh: Blood and Honey is getting a sequel. Included: an “incredibly violent” Tigger.

THIS DAY IN GAMING HISTORY

I choose you Pikachu! Pokémon Yellow: Special Pikachu Edition was released by Nintendo on this day in 1998.

HIVE MIND

Was this email forwarded to you?

Subscribe to Loading Screen today and turn your gaming knowledge up to 11!