Depends on the umbrella corporation and the companies underneath it. Seems to be working for Berkshire Hathaway. The videogame business is extremely hit driven, has long production schedules and ever increasing expenses. Not an easy nut to crack. I think everyone predicted something like this was bound to happen with Embracer. Brings to mind the old Microsoft tactic of "Embrace, extend, and extinguish." It's the hug of death.
With Volition specifically, why did they ever attempt a follow up to Saints Row, a series that only ever aped Grand Theft Auto and spun Rockstar's madcap writing antics up to another level of zaniness. Instead of using all the latent creativity present, they went with the safe option to reboot a tired old series. Safe, boring, failure. Oh well. I hope the suits learn from this and try again in a smarter way that doesn't result in hundreds of layoffs.
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