Summary
- Piranha Bytes confirmed it's "in a difficult situation" following reports that it's on the brink of shutting down.
- Nevertheless, the German RPG developer asked the fandom not to write it off just yet.
- Piranha Bytes' precarious situation stems from Embracer Group's ongoing downsizing efforts.
RPG developer Piranha Bytes has responded to the reports claiming the company is on the brink of closure, asking the fans not to write it off just yet. While that particular request is optimistic, the overall contents of the company's latest statement still raise concerns about its future.
The German developer of the Gothic, Risen, and Elex series was acquired by Embracer Group-owned THQ Nordic in 2019. Since then, Piranha Bytes has released just one game in the form of Elex 2, which was met with a mixed critical reception and lackluster sales (relative to its predecessor) that certainly weren't helped by its proximity to Elden Ring. Those recent struggles do not take away from the fact that many other Piranha Bytes games enjoy cult followings to this date.
Even More Embracer Studios Hit With Layoffs
Even more Embracer Group studios are hit with layoffs as the gaming giant continues its aggressive cost-cutting efforts, which started back in spring.
Piranha Bytes Admits It’s ‘In a Difficult Situation’
Following a massive influx of fan questions resulting from the multiple recent reports that Piranha Bytes may be shutting down, the Essen-based studio has now offered some clarifying comments on the matter. Taking to Twitter, the company admitted that it finds itself "in a difficult situation" nowadays, thus seemingly confirming the earlier reports detailing its troubles. Nevertheless, the studio asked the fans not to write it off prematurely, stating that it is currently doing everything it can to remain in business.
The studio's statement implies that Embracer's previously reported efforts to find a buyer for Piranha Bytes are still ongoing. The Swedish holding company has been in the process of downsizing its operations since June 2023, when its $2 billion investment deal with an undisclosed partner—which was rumored to be the Saudi Arabian Public Investment Fund—fell through. Embracer has laid off over 900 people in the months that followed.
Yes, it's true. We, Piranha Bytes, are in a difficult situation. There are a lot of news about us circulating right now ant this is our answer: Don't write us off yet!
In the days preceding Piranha Bytes' latest statement, its unannounced project Currywurst, also known as WIKI6, has once again appeared on the pages of the German Federal Ministry of Economics and Climate Protection, which previously granted it €3.1 million in funding. The recent removal of that page was previously cited among the circumstantial evidence substantiating the claims that Piranha Bytes faces immediate closure, although this latest turn of events implies that the delisting itself was a mistake. WIKI6 is widely assumed to be Elex 3.
According to recent reports, Piranha Bytes Creative Director Bjorn Pankratz left the studio in late 2023 following disagreements with his 30-something team about the company's next game. While Pankratz is believed to have been the driving force behind the somewhat polarizing setting of the Elex series, his departure might not necessarily spell the end of those games if Piranha Bytes has indeed received federal funding for developing a third entry in the franchise. His wife, Piranha Bytes Game Designer Jennifer Pankratz, remains at the company as of early 2024, assuming her LinkedIn profile is up-to-date.