The Embracer Group seemingly cannot help themselves but to incur humiliation and financial losses upon themselves, having invested billions of dollars on inflating their video game portfolio only to then focus entirely on producing rubbish content plagued with ESG / DEI themes and values resulting in numerous financial flops.
A notable financial failure was the dismal Saints Row Reboot, a game whose fate was sealed by Sweet Baby Inc.’s consultations, ultimately leading to the dissolution of the entire studio.
Fortunately for Embracer, they’ve managed to unload one of their largest burdens, Gearbox Software, onto Take-Two Interactive. Originally purchased for $1.3 billion in 2021, they’re now selling the studio for a mere $460 million, roughly a 65% discount from the price they’ve paid three years prior.
In September 2023, reports surfaced that Gearbox Software was put up for sale by the Embracer Group due to dismal performance figures of lackluster games intertwined with woke progressive pandering. Examples included Tiny Tina’s Wonderlands, a glorified DLC expansion for Borderlands 3 sold as a full-priced standalone experience, and New Tales From the Borderlands, which peaked at just 435 concurrent players on Steam.
The failures of New Tales From the Borderlands forced Gearbox to bundle the entire franchise into a singular collection to boost “sales” numbers.
Many game development studios have faced closure or significant layoffs recently, reflecting the increasing unsustainability of modern game development. The adoption of “inclusive” hiring practices, akin to affirmative action, by numerous corporations has led to overinflated studios filled with inexperienced and inadequate personnel.
The industry as a whole has spiraled out of control, with the cost of developing Sony’s first-party titles soaring to hundreds of millions of dollars.
As expected, this approach becomes unsustainable when consumers aren’t flocking to purchase progressive woke content in large enough numbers. With ESG hedge funds closing down left and right, game studios can no longer rely on churning out woke DEI shovelware for easy financial investment.
Consequently, they’re left with no option but to begin trimming the fat.
Gearbox Software is predominantly known for the success of the Borderlands franchise, particularly Borderlands 2 and 3, which have each sold tens of millions of copies. However, despite this success, Borderlands 3 is only notorious for its progressive writing, with its lead writer, Sam Winkler, defending DEI consultation outfits and labeling gamers as bigots.
Which of course doesn’t bode well for the franchise’s future, especially considering the failures of Tiny Tina’s Wonderlands and New Tales From the Borderlands, both of which were developed following the release of Borderlands 3 and written by Winkler himself flopped spectacularly, and then we have a movie adaptation of the franchise itself which is bound to flop in theaters too.
Embracer Group’s attempt to secure a $2 billion deal with the Saudi Arabian government, leveraging Gearbox’s success with Borderlands 3, faltered due to the failures of Volition’s Saints Row Reboot and Gearbox’s Tiny Tina’s Wonderlands and New Tales. Nevertheless, Take-Two Interactive decided to acquire the dwindling developer for $460 million.
The acquisition is expected to be finalized by the end of June, with Embracer Group retaining Gearbox Publishing San Francisco, primarily known for the Remnant franchise.
Take-Two Interactive, parent company of 2K Games and Rockstar Games, has a reputation for aggressively pursuing Grand Theft Auto game modifications and effectively had the 18-year-old leaker of Grand Theft Auto 6 sentenced to “indefinite hospitalization.”
Rockstar Games also previously acquired the development team behind “FiveM,” an unofficial multiplayer modification for Grand Theft Auto V known for its diverse range of customized game servers, spanning from roleplay to highway racing. One can’t help but wonder if there were any ulterior motives behind such a deal.
With this acquisition, Take-Two will gain ownership of Gearbox Software and its vast IP portfolio, which includes popular titles such as Borderlands, Homeworld, Brothers in Arms, Duke Nukem, and Risk of Rain.
Gearbox currently has six projects in development, five of which are sequels, because of course they are, two of these sequels are from the Borderlands and Homeworld franchises, as well as one new intellectual property.
Take-Two anticipates further opportunities to invest in new projects and expand Gearbox’s successful franchises.
Take-Two expressed keen interest in further investment in new projects and existing franchises of the developer. Strauss Zelnick, Chairman and CEO of Take-Two, highlighted the significance of the acquisition, emphasizing the enhancement of creative talent and portfolio, particularly the iconic Borderlands franchise.
David Ismailer, President of 2K, expressed excitement about the long-standing partnership with Gearbox and the future collaborations, given the lucrative success 2K Games has previously had with Gearbox and Randy Pitchford.
“With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling,
We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series.”
Founder and CEO of Gearbox Entertainment, Randy Pitchford, noted the opportunity to elevate Gearbox to new heights through the partnership, citing Take-Two and 2K’s commitment to “creativity and success” despite of course 2K’s entire catalogue of games revolving around annual slog fest sport titles.
“Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level, Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm’s length as partners. I’m incredibly excited about what we can accomplish now that we’re fully aligned as one.”
I anticipate Borderlands 4 to suffer greatly under Sam Winkler’s narrative direction, which will likely be inundated with more forced “whacky memes” and progressive values shoved down players’ throats. Considering Borderlands 3’s inclusion of a DLC centered around a gay wedding, I’m not particularly enthusiastic.
I’m also not particularly enthused by the news that Randy Pitchford will retain his role as the founder and CEO of Gearbox, especially considering the studio’s integration under 2K.
Furthermore, with Take-Two now in charge, there’s a likelihood of crackdowns on the Borderlands modding community. These dedicated fans have made significant contributions with balancing modifications like the “community patch” for BL2 and the “REDUX” mod for Borderlands 3 which unfortunately doesn’t change its writing.
As for the upcoming sequel, Gearbox might feel obligated by their new corporate masters to incorporate some sort of monetized online component laced with microtransactions, which is just pure speculation given 2K Games and Take-Two’s notorious money grubbing track record.
Needless to say, Borderlands 4 is almost certain to be more whacky progressive slop, Embracer Group’s decision to offload their financial burden onto Take-Two for $460 million will likely backfire, as now the consequences of Gearbox’s failures will be squarely on the shoulders of Take-Two Interactive of which I can’t help but feel a sense of satisfaction.
