Eidos Montreal
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Documents about Eidos Montreal
Back Next Week
This update serves as a brief industry briefing during a scheduled hiatus, providing a snapshot of the current state of the video game sector as of late March 2026.
- The video game industry is experiencing severe instability as of late March 2026, marked by significant layoffs at Eidos Montreal and Polyarc, and the closure of Ivy Road.
- Industry veterans characterize the current economic climate as more severe than the market crash of the 1980s, with few professionals remaining unaffected.
- Nexon is shifting to a conservative investment strategy that prioritizes fewer, high-conviction projects with proven long-term retention and margin potential.
About Grounded 2 and All the People Helping to Make It
Obsidian Entertainment is currently developing Grounded 2, a sequel to its survival-crafting title, which features a map triple the size of the original and introduces rideable insects known as buggies.
- Obsidian Entertainment is developing Grounded 2, a survival-crafting sequel featuring a map three times the size of the original and new mechanics such as rideable insects.
- Grounded 2 will launch in early access on Xbox Series and PC, with Obsidian utilizing the program to gather community feedback for refining core features like rideable buggies.
- Eidos Montreal is co-developing Grounded 2, marking a collaborative effort between the two studios to build upon the community-driven model established by the first game.
Embracer Group Q3 Financial Report: 2022
Embracer Group’s third-quarter financial report for the period ending December 31, 2022, highlights a period of significant expansion driven by acquisitions, alongside a strategic shift toward long-term organic growth through a robust development pipeline.
- Embracer Group reported Q3 net sales of SEK 11.6 billion ($1.12 billion), a 128% year-over-year increase, though organic growth remained negative at -3%.
- The PC/Console segment experienced a 1,554% year-over-year profit decline, driven by a lack of major releases and the poor performance of titles like the Saints Row reboot.
- The company is pivoting toward long-term organic growth by investing SEK 1.6 billion into its internal development pipeline during the quarter.
Embracer Group Annual Financial Report 2022
The Embracer Group fiscal year 2022 financial report highlights a period of significant expansion and robust revenue growth for the Swedish holding company.
- Embracer Group reported SEK 17 billion ($1.7 billion) in net sales for fiscal year 2022, an 89% year-over-year increase driven primarily by a 116% surge in video game operations.
- EBITDA grew by 53.9% year-over-year to reach SEK 6.13 billion ($613 million).
- The company maintains a development pipeline of 223 titles, including a strategic commitment to release over 25 AAA games by March 2026.
Embracing the Future
The acquisition of Square Enix’s Western studio network by Embracer Group represents a significant strategic realignment for both entities.
- Embracer Group acquired Square Enix’s Western studio network—including Crystal Dynamics, Eidos Montreal, and Square Enix Montreal—along with IPs like Tomb Raider and Deus Ex for $300 million.
- The acquisition adds over 1,000 development staff to Embracer Group, bringing its total headcount to more than 14,000 employees across 124 studios in over 40 countries.
- Square Enix offloaded these studios to reduce costs, viewing the Western division as a high-expenditure operation that consistently underperformed relative to expectations.
Microsoft Reportedly Paid $5-10 Million to Bring Guardians of the Galaxy to Game Pass
The financial dynamics of Microsoft’s Xbox Game Pass subscription service remain a subject of industry scrutiny, particularly regarding the acquisition costs for third-party titles.
- Microsoft reportedly paid between $5 million and $10 million to bring Eidos Montreal's 'Guardians of the Galaxy' to the Xbox Game Pass subscription service.
- Industry analyst David Gibson estimates this deal equates to approximately $2 per game, significantly lower than the $29 retail price point at the time.
- The estimate is based on 15 years of coverage of Square Enix data and discussions with industry sources, though Microsoft does not officially disclose Game Pass financial terms.