Enad Global 7 (EG7) has announced its decision to close its subsidiary Antimatter Games this summer. The Swedish holding company explored various options, but none of them fit into the target timeline.
According to a post on its official website, EG7 has already initiated the process to close Antimatter Games. The process is expected to result in an annual cost reduction of roughly SEK 50 million ($4.66 million).
The company initially considered selling Antimatter, shifting the studio to a work-for-hire model, or finding a third-party publisher for I.G.I. Origins. However, these options “have not produced sufficient traction within the Group’s target timeline.”
EG7 noted that the studio closure will also result in one-time, non-recurring costs of SEK 15-25 million ($1.4-1.8 million).
Speaking of the reasons for the Antimatter shutdown, the company cited its efforts to “achieve higher predictability and profitability.” Other details remain undisclosed.
The announcement comes shortly after Alta Fox, one of the largest shareholders of Enad Global 7, urged the company to explore alternative strategic options for further growth. The list included relisting the stock on the US exchange and even selling the entire holding company.
“Despite being a leading gaming company with a diverse portfolio of high-quality assets, EG7 is among the cheapest publicly traded gaming stocks in the world,” the letter reads.
Although EG7 acknowledged some of the issues mentioned by Alta Fox, it noted that it expects sustainable revenue and profit growth over the next five years.
Enad Global 7 has acquired several game companies since 2018, including Sold Out, Piranha Games, Daybreak Game Company, and Innova. The latter was sold last year for €32 million, with CEO Ji Ham saying, “EG7 will no longer have operations in Russia and no further exposure to continuing uncertainties in the region.”
Antimatter Games became part of EG7 in 2018. Describing itself as the “largest game development studio in the South West UK,” it is best known for making Rising Storm 2: Vietnam and contributing to the Killing Floor series.
Prior to the announced closure, Antimatter Games was working on tactical first-person shooter I.G.I. Origins. The status of the project is now unclear.