Embracer has announced a "comprehensive restructuring program" which will result in studio closures, project cancellations and job losses.
The Swedish umbrella company has grown enormously through acquisitions over the past five years, and now owns a swathe of studios such as Tomb Raider developer Crystal Dynamics, Borderlands maker Gearbox, rights to franchises such as The Lord of the Rings, and an array of other publishers such as Plaion, Saber and THQ Nordic.
But while amassing its empire, Embracer is yet to see a big return. Last year's big bet, its Saints Row reboot, was a critical and commercial failure. More recently, the company suffered a body blow when a major unannounced $2bn deal fell through, prompting its shares to plummet by an eye-watering 40 percent.