The company announced in June it would start closing studios and laying off employees.

Campfire Cabal has been shut down by Embracer Group. Campfire Cabal is the first studio being shut down by Embracer after a deal worth $2 billion (USD) fell through several months back.

The closure of Campfire Cabal was first shared on LinkedIn (via bogorad222 on Twitter) by Bruno-Christian Belibou, the now former executive producer at Campfire Cabal.

Campfire Cabal first began operations in September 2022. It was founded and led by Jonas Wæver, whom also acted as Campfire Cabal's creative director. Wæver previously worked at Logic Artists, where he helped to create the tactical RPG Expeditions. Wæver had hoped to continue that idea of making "high-quality, narrative-driven RPGs" with Campfire Cabal, but that will not come to pass now.

Embracer Group announced back in June that they were planning to close studios, cancel games, and layoff staff after a contract worth $2 billion fell through. According to Embracer, they had a "verbal agreement" for this deal in October 2022 that would have brough in more than $2 billion of contracted development revenue over a period of six years. Beyond Campfire Cabal, there is no word yet on which studios, projects, or employees will be impacted in the near future.

Embracer Group is a massive holdings company that owns and controls several subsidiaries which, in turn, own their own game studios and companies. Embracer owns studios such as Crystal Dynamics, Eidos-Montreal, Coffee Stain Studios, Gearbox, Volition, Deep Silver, 3D Realms, Tripwire Interactive, THQ Nordic, Limited Run Games, and very many more.