Newly purchased game studio will be closed directly by Embracer Group

According to a new Report from Bloomberg Embracer Group has now closed one of the three studios it bought from Square Enix earlier this year. Square Enix Montreal was primarily responsible for the development of mobile games such as Hitman Go and Lara Croft Go. It wasn’t until October that some sort of restructuring took place at the studio, along with a name change to Onoma.

Studio behind Lara Croft Go has closed

Just a few weeks after this change, the studio was simply shut down. According to the report, some of the approximately 200 employees were given the opportunity to switch to other studios. However, it is not yet known how many employees will actually be able to make this change and how many will then have to look for other positions.

Bloomberg’s report explains that the move is a major cost-cutting initiative by the company. Eidos Montreal, for example, didn’t have to close its doors, but the studio is said to be “cutting back” on an unannounced project, with another project being shelved completely. As Bloomberg’s Jason Schreier reported a little later on Twitter, the discontinued project is likely a title inspired by Stranger Things.