New World Interactive, the developer of Insurgency, has become the latest casualty of Embracer Group’s reckless studio acquisitions. As part of Embracer Group’s efforts to reduce their debts, New World Interactive has been forced to lay off staff and cancel an unannounced project. This unfortunate turn of events sheds light on the consequences of irresponsible business practices within the gaming industry.
Embracer Group, a Swedish conglomerate, embarked on a spree of studio purchases, totaling over 200 game development projects. However, this acquisition frenzy led to an accumulation of debt, prompting Embracer Group to downsize its studios. The repercussions were dire, with over 900 employees being laid off during the summer. Red Faction creator Volition was closed, Fishlabs had to cut down its staff by half, and two dozen employees were let go at Beamdog’s Mythforce studio. This wave of downsizing has significantly impacted the gaming industry, leaving numerous talented individuals unemployed.
New World Interactive, a subsidiary of Saber Interactive, suffered the consequences of Embracer Group’s actions. The restructuring changes at New World Interactive have led to layoffs within the studio. Although it is unclear how many employees have been affected, the cancellation of an unannounced project indicates the severity of the situation. Saber Interactive has stated that they are making efforts to relocate the affected individuals to open positions within the company, while also providing severance packages.
The downsizing at New World Interactive has raised concerns about the future of the studio. However, Saber Interactive has refuted rumors suggesting that New World Interactive as a whole is being shuttered. The studio will continue working on their flagship military shooter, Insurgency: Sandstorm, as well as other unannounced projects. Nevertheless, the departure of talented individuals and the cancellation of a project will undoubtedly have an impact on New World Interactive’s operations and creative output.
New World Interactive, founded in 2010, began as a group of modders working with Valve’s Source Engine. Their breakout release, Insurgency: Modern Infantry Combat, was originally a Source conversion. In 2014, New World Interactive transformed the mod into a standalone shooter entitled Insurgency. The studio’s reputation grew, and in 2018 they released Insurgency: Sandstorm, receiving praise for its immersive gameplay and exceptional sound design.
The downsizing of New World Interactive serves as a stark reminder of the consequences of irresponsible studio acquisitions. The industry’s thirst for growth and expansion can sometimes lead to an unsustainable business model. As talented individuals lose their jobs and projects are canceled, it is essential for companies to reassess their strategies and prioritize responsible growth. Only then can the industry flourish, providing stability and opportunities for both developers and players alike. Our thoughts go out to all those affected by the downsizing at New World Interactive, and we hope for a brighter future in the ever-changing landscape of game development.
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