Embracer Group Shuts Down Montreal Video Game Studio
(Bloomberg) — Video game publisher Embracer Group AB is shutting down Onoma, a Montreal, Canada-based video game studio that it acquired just months ago, according to people familiar with the situation.
The company informed employees Tuesday that some staff would be transferred to a sister studio, Eidos Montreal, said the people, who asked not to be identified because they were not authorized to speak publicly. Onoma, formerly known as Square Enix Montreal, was best known for creating the Go series of mobile games such as Hitman Go. Embracer didn’t immediately have a comment.
The shutdown is unusual because of the timing. Onoma, previously known as Square Enix Montreal, was purchased in May and on Oct. 10 announced a new name and branding.
Sweden-based Embracer has been on a video game industry shopping spree, buying companies both big and small over the past few years. Onoma was part of a large acquisition earlier this year, alongside Eidos Montreal, San Francisco-based Crystal Dynamics and a handful of franchises including Tomb Raider and Deus Ex.
The move appears to be part of a larger cost-cutting initiative. Eidos Montreal has reduced the scope of one unannounced project and will cancel another one, the people said. The company also plans to work with Microsoft Corp. to help develop some games, including one in the Fable franchise.
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