Another Embracer-owned game studio, Piranha Bytes, has reportedly shut down

Another game developer studio that's owned by Embracer Group has reportedly closed its doors. The German language site GameStar (via Eurogamer) reports that Piranha Bytes has shut down. So far, Embracer has yet to confirm the report.

However, two of Piranha Bytes' former founders, Björn Pankratz and Jennifer Pankratz, have posted word that they have established a new game development team, Pithead Studio. The reveal was made on the studio's new X account. There's no word yet on what the team's first project will be like.

Piranha Bytes was first formed in Germany in 1997. The development studio is best known for its role playing games made for consoles and the PC, starting with the Gothic series. Piranha Bytes released three games in that series between 2001 to 2006. It later developed and released three games in the Risen series, and finally released two games in the ELEX science-fantasy RPG series. It's last game was released in 2022.

Piranha Bytes was acquired in 2019 by Embracer Group via its THQ Nordic division. However, in June 2023, the company announced a major restructuring that included mass layoffs and shutdowns of several studios. It also sold off a number of other studios and games that were part of Saber Interactive and Gearbox Entertainment.

In April, Embracer announced plans to break itself up into three different gaming and entertainment companies, with this breakup expected to become official sometime in 2025. In June, it was revealed that Embracer was closing Pieces Interactive after sales of its heavily hyped Alone in the Dark reboot did not achieve expectations.