Embracer Group Announces $500 Million Sale of Saber Interactive, Developer of Upcoming ‘Star Wars’ Game Remake

In a significant strategic maneuver, Embracer Group AB, the Swedish gaming powerhouse, is poised to offload one of its major subsidiaries, Saber Interactive, in a monumental deal valued at up to $500 million (approximately Rs. 4,142 crore), as per sources familiar with the transaction. This landmark agreement heralds a new chapter for Saber Interactive, slated to transition into private ownership under the stewardship of a consortium of private investors. With a workforce comprising approximately 3,500 employees, Saber Interactive is primed to chart its course independently in the competitive gaming landscape.

A pivotal aspect of Saber Interactive’s post-acquisition trajectory is its steadfast commitment to the ongoing development of the highly anticipated remake of Star Wars: The Knights of the Old Republic. The project, initially entrusted to Aspyr Media, faced a tumultuous transition following its removal from the latter in 2022.

However, Saber Interactive now assumes the mantle, poised to breathe new life into this revered gaming franchise. This announcement resonates strongly within the gaming community, igniting fervent anticipation and speculation surrounding the remake’s potential under Saber Interactive’s stewardship.

Embracer Group’s decision to divest Saber Interactive underscores the company’s broader strategic realignment efforts, marked by a concerted focus on streamlining operations and optimizing its portfolio. Against the backdrop of an evolving gaming landscape and intensified competition, Embracer Group has undertaken a series of cost-cutting measures, including employee layoffs and studio closures, in a bid to fortify its position and drive sustainable growth in a dynamic industry landscape. As the gaming industry continues to evolve, the divestiture of Saber Interactive stands as a testament to Embracer Group’s unwavering commitment to adaptability and strategic agility in navigating the ever-changing tides of the gaming sector.

Saber and Embracer declined to comment. Saber, the developer of games such as Snowrunner and World War Z, operates studios in several countries, including the US, Portugal and Russia. In addition to making its own original titles, it does work for other developers.

Embracer purchased Saber for $525 million (roughly Rs. 4,349 crore) in 2020 as part of a spending spree in which Chief Executive Officer Lars Wingefors acquired at least 27 companies. Several of the acquisitions, such as Demiurge Studios, based in Boston, and New World Interactive, based in Denver, were folded into Saber.

Over the past year, as interest rates soared and a $2 billion (roughly Rs. 16,569 crore) partnership with a gaming group backed by Saudi Arabia’s sovereign wealth fund fell through, Embracer has been shedding costs. The debt-saddled company has shut down several subsidiaries, canceled projects and is looking to sell more divisions.