Alone in the Dark: Emily and Edward stood at the gates of Derceto Manor.
Image via THQ Nordic.

Embracer Group kills yet another studio after its Alone in the Dark remake underperformed

Pieces Interactive was acquired in 2017.

Last month, Embracer Group CEO Lars Wingefors assured that the company’s restructuring efforts, which saw it shut down multiple studios and lay off roughly 27% of its staff, had ended and had “created a stronger foundation for improved profitability, cash flows and long-term value creation.” Yet as of today, Embracer has closed Pieces Interactive, the developer behind this year’s Alone in the Dark remake.

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Although there’s been no announcement by Embracer itself, Pieces Interactive has confirmed its closure on its own website. The studio was founded in 2007 and, in its 17-year history, launched over 10 games. After working with THQ on the second expansion for action RPG Titan Quest, it was acquired by Embracer (THQ’s parent company) in 2017. Under Embracer, it handled another Titan Quest expansion and then the aforementioned remake of the original Alone in the Dark from 1992, which launched this past March.

Embracer Group logo on a purple and pink backgroubd.
Image via Embracer Group/LinkedIn.

No reason has been given for Pieces Interactive’s closure, but it should be noted that the Alone in the Dark remake was apparently not a big hit for Embracer. There are no exact sales figures but, in Embracer’s report on its 2024 fiscal year, it said Alone in the Dark “saw a positive reception from users, but a mixed reception
from critics and ultimately performed below management expectations.” Regardless, the shut down of Pieces Interactive is another contributor to the already dire number of games industry layoffs to have taken place this year.

Other studios to have been closed by Embracer in the past year or so include Saints Row developer Volition and Free Radical, which was in the process of making a new Timesplitters. Others, such as Eidos-Montréal, were impacted by layoffs, while Gearbox and Saber Interactive have been sold off. Despite the layoffs, Embracer intends to launch 70 projects (which includes DLC) by the end of March 2025. It will also be splitting itself into three separate companies, though none of them will keep the Embracer Group name.

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Michael Beckwith
Staff writer covering all kinds of gaming news. A graduate in Computer Games Design and Creative Writing from Brunel University who's been writing about games since 2014. Nintendo fan and Sonic the Hedgehog apologist. Knows a worrying amount of Kingdom Hearts lore. Has previously written for Metro, TechRadar, and Game Rant.