Embracer has struck again! This time, it is Piranha Bytes studio that was impacted. The studio behind many legendary series including ELEX, Gothic, and Risen was shut down. It was founded in 1997 and survived the dotcom bubbles of 2001 and the financial crisis of 2008, but has now bowed to Embracer’s new business decision.
According to Tom Phillips of Eurogamer, Embracer has been looking for a buyer for Piranha Bytes as part of its cost-cutting strategies. Last year, Embracer was forced to restructure its business after a Saudi funding deal fell through the cracks.
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The Swedish game conglomerate announced the end of its restructuring program earlier this year. While it lasted, it led to the shuttering of multiple studios and the cancellation of many unannounced projects. Several thousand people lost their jobs in the process too.
A trip to Piranha Bytes website shows a giant-sized logo of the studio now covering the entire website. At the bottom, of the logo, you will find their physical address, email address, and a statement that reads, “This site does not collect personal data”.
Layoffs happened at Piranha Bytes last year. Earlier this year, the company said it was dealing with “a difficult situation” and faced potential closure but remained optimistic that it would somehow pull through.
Björn Pankratz and Jennifer Pankratz
“Yes, it’s true,” the studio announced in January. “We, Piranha Bytes, are in a difficult situation. There is a lot of news about us circulating right now and this is our answer: Don’t write us off yet! We do everything to continue creating worlds in which you can lose yourself. This is what our hearts have always beaten for.”
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A new report by the German website GameStar confirmed the studio was shut down at the end of June. It is not clear how many people were affected by the closure. However, GameBaba Universe identified 30 people with their profiles linked to the studio on LinkedIn.
Ex-Piranha Bytes employees launch new studio
The end of one story is the beginning of another. While the closure of Piranha Bytes was a sad day in the video game industry, the launch of Pithead Studio by former Piranha Bytes creative director Björn Pankratz and former game designer Jennifer Pankratz was a cheery development. The duo reportedly left Piranha Bytes back in November.
The veterans said they created the indie studio to continue making role-playing games for which Piranha Bytes was known. The co-founders announced the studio with a tweet on Monday, July 8, 2024, which read;
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“With Pithead Studio we have founded a new indie studio. In the future, we will develop immersive and fantastic indie games. Curious? Then take a look at our latest video.”
The co-founders promised to share more details about their exit from Piranha Bytes in future episodes of their weekly videos which are expected to be published every Monday.
“We founded a new company last Thursday named Pithead Studio GmbH,” Jennifer explained. “Why Pithead Studio? Because we are from the Ruhr area and Pithead means something like a mine shaft entrance.”
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“But what is Pithead doing? Well, in the future, we will focus on developing Indie Games. We wanted to keep doing what we love. This seemed like the best way to do it.”
The duo repurposed a private YouTube channel and turned it into the company’s channel. We are excited about Pithead Studio and really can’t wait to experience the first game that they will make. For those who lost their jobs due to the Piranha closure, we want to remind them that there is nothing wrong with them but the industry.
