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this post was submitted on 11 Sep 2024
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I don't know how you got from A to B on the Porsche. Embracer was funded largely by debt that they were expecting to get bailed out of by an investment that didn't happen; the classic leveraged investment gone wrong. Microsoft absolutely could stomach whatever losses they face, especially since that was the whole idea a few years back when they started Game Pass, so them deciding to not follow through on that and tighten their belts now is a situation unique to them. At large, across the industry, are tons of companies making big bets like Suicide Squad or Concord or Warhaven that follow a live service template that's been tapped out of customers and don't work out, and even smaller companies following the traditional publisher model like Mimimi are so exhausted hunting for funding for their next game, just barely making it by on copies sold, that they decide instead to close up shop. That'll happen when customer dollars are spread out around more games.