Elex and Gothic developer Piranha Bytes facing closure under Embracer
Piranha Bytes has admitted that it is currently in the "difficult situation" of potentially becoming the next Embracer-owned studio to close its doors as part of the company's restructuring plan.
Rumors of the German studio's possible closure spread online last week after it was discovered that its website had been reduced to just its logo and address. As noted by fans on Reddit, the German government's funding page also no longer mentions its next project.
Piranha Bytes has now addressed the situation on X, stating that while it is possible that it will shut down, it is confident that it will succeed and continue to exist. The studio is now attempting to "find a partner for this project," implying that if it survives Embracer's restructuring, its next title will not be backed by the group.
It is also claimed that THQ Nordic, the studio's parent company, has said that Piranha Bytes will acquire not only the rights to its name, but also the Elex IP, as its next project is expected to be the third game in the series.
Embracer Group's restructuring plan was announced in mid-2023, and it has resulted in the loss of over a thousand jobs due to multiple studio closures and project cancellations following a Saudi investment opportunity that fell through.
Other recent Embracer layoffs:
Lost Boys Interactive, the co-developer of Tiny Tina's Wonderlands, was hit by layoffs earlier this year, affecting an unknown number of employees.
Free Radical, the developer of TimeSplitters, closed its doors in December 2023 after reopening only two years earlier to work on a new game in the shooter franchise.