Embracer to replace CEO who oversaw turbulent acquisition spree, and mass layoffs

Lars Wingefors, the executive and co-founder who oversaw Embracer’s turbulent acquisition spree, and subsequent mass layoffs, is set to step down as CEO and take on a new role.

From August 1, Wingefors will relinquish his CEO seat, and is proposed to take on a new role as executive chair of the board, focusing on “strategic initiatives, M&A, and capital allocation”.

Phil Rogers, the current CEO of Crystal Dynamics and Eidos, will take over as Embracer CEO in August. He became CEO of Eidos in 2008 and was CEO across Square Enix’s western business from 2009 to 2022.

Wingefors’ replacement as CEO follows a period of painful course correction for Embracer, following several years of rapid expansion through mergers and acquisitions.

Embracer announced in May 2023 that a $2 billion deal had collapsed at the last minute, leading it to embark on a nine-month restructuring programme that resulted in almost 1,400 job cuts, studio closures, and the cancellation of tens of games.

Embracer closed Saints Row developer Volition, Campfire Cabal, and TimeSplitters studio Free Radical Design, while the likes of Borderlands maker Gearbox and Saber Interactive have been sold.

The Swedish gaming giant and its CEO faced a backlash in the wake of the restructuring, which is now complete, and Wingefors admitted that a lot of the criticism levelled at him personally was probably fair.

“As a leader and an owner, sometimes you need to take the blame and you need to be humble about if you’ve made mistakes and if you could have done something differently,” he told GI.biz last year.

“I’m sure I deserve a lot of criticism, but I don’t think my team or companies deserve all the criticism. I could take a lot of that blame myself. But ultimately I need to believe in the mission we set out and that is still valid, and we are now enabling that by doing this [new] structure.”

Commenting on his new role this week, Wingefors said he was proud of his achievements.

“With the start of this new phase, I am thankful for the years and lessons learned as CEO of Embracer. While the road has not always been straight, I am incredibly proud of the achievements made possible by our talented teams, which have created some incredible experiences for gamers.

“This new phase allows me to focus on strategic initiatives, M&A, and capital allocation, ensuring Embracer’s continued growth and success. I am more convinced than ever that the best is still ahead of us.

“Having worked very closely with Phil over the past years, I have high confidence in his abilities. I look forward to a continued close collaboration to further strengthen the business and drive value in the coming years.”