Tuxedo Labs is best known for creating the hit voxel-based destruction PC game Teardown. Embracer adds Dennis Gustafsson, Tuxedo Labs’ founder and CTO, who is a highly technical visionary with a specialty in physics, and his team of 5.

Founded in 2019 in Malmo, Sweden, Tuxedo Labs has six team members led by Dennis Gustafsson, a highly-technical visionary. Their first title, Teardown, has received universal critical acclaim since its initial release in Steam Early Access in 2020 and has built a thriving modding community. The game exited early access in April 2022 and has sold over a million copies on Steam to date.

Dennis Gustafsson is the founder of Tuxedo Labs and Chief Technology Officer; he recently brought on Marcus Dawson, former CEO of Illusion Labs, as the company’s new Chief Executive Officer. Gustafsson has a Master of Science degree in technological media from Linköpings University, and previously worked on the object-oriented physics engine Meqon and co-created the popular game Smash Hit in 2014 (200m downloads).

“Tuxedo Labs has created revolutionary technology that opens up vast possibilities for emergent gameplay and user-created content. Their hit title Teardown has the potential to become the standard-bearing platform for physics simulation in games. Many of us at Saber and our subsidiary 3D Realms have worked with Dennis since the mid-2000’s. We are super excited to welcome Dennis, their CEO Marcus Dawson, and the rest of the Tuxedo Labs team into the Embracer family,” said Matthew Karch, CEO of Saber Interactive.

“This is a perfect fit for us because of our shared interests in physics-driven game design and Saber’s resources to help us achieve our long-term vision. We will now be able to rapidly expand and accelerate our plans for Teardown, including bringing it to new audiences, while simultaneously focusing on evolving voxel-based technology for our next generation of games,” said Dennis Gustafsson, founder of Tuxedo Labs.

The acquisition adds a uniquely talented team focused on physics-based game technology and design. Within the Embracer Group, Tuxedo Labs will operate as a subsidiary under the Saber operating group. The acquisition further strengthens Saber’s presence within Sweden.

Founder Dennis Gustafsson is committed to Tuxedo Labs and the company will focus on growing in Malmo, Sweden. Post transaction business will remain as usual, with the team focused on expanding Teardown.