The Embracer Group continued to make some big acquisition moves in 2022.  This included buying board game company Asmodee for $3 billion and getting the Eidos/Crystal Dynamic properties from Square Enix.

Unfortunately, Embracer’s biggest video game release of 2022, a remake of THQ’s Saints Row, was a disappointment.  Overall Embracer Group stock was down 50% in 2022.  This compares with an average decline of 30% for the DFC Intelligence Video Game Stock Index

Currently, Embracer Group is not included in the DFC Intelligence Video Game Portfolio.  This is despite analysts being extremely bullish on the stock.  The concerns are that Embracer has grown too large, too fast, and will struggle to consolidate its holdings.  While we are not purchasing this stock we do indicate there is substantial upside potential that comes at the cost of high risk.

For more info on the Embracer Group see the full DFC analysis.