Embracer’s investment-turned-divestment spree continued at this time after the Swedish conglomerate agreed to divest Arc Video games and Cryptic Studios in a transfer that’s anticipated to generate web money proceeds of $30 million.
Arc Video games is finest recognized for engaged on the Remnant franchise, whereas Cryptic Studios is the developer behind Neverwinter and Star Trek On-line.Â
Each firms are being bought by Mission Golden Arc, Inc., which is owned and led by members of the Arc Video games administration crew. The deal is being financed by XD Inc., a world developer and writer listed on the Predominant Board of the Hong Kong Inventory Trade.
Embracer is about to retain the publishing rights for the Remnant franchise. These rights shall be transferred to THQ Nordic, which already owns the Remnant IP and growth studio, Gunfire Video games.
It should additionally retain the rights to on-line fantasy title, Fellowship, which Arc Video games revealed this yr. They are going to be bundled into the pending Espresso Stain Group spin off, which was introduced again in Could as a part of a plan to separate Embracer into three standalone, publicly-listed firms.
Stockholm-based studio Chief Insurgent will proceed growing Fellowship (presently in early entry) with a crew of round 35 folks.
“This transaction helps our key priorities by strengthening our deal with strategic property and core IPs in Embracer whereas bettering profitability and free money circulate,” mentioned Embracer CEO, Phil Rogers.
“The deal additionally permits on-line multiplayer recreation Fellowship, developed by a gifted exterior crew in Stockholm, to seek out an awesome residence inside Espresso Stain Group. I want to thank the groups at Arc and Cryptic for his or her onerous work over the previous 4 years and want all of them the perfect as we’re assured they may thrive and develop within the years forward.”
Embracer making an attempt to reset after mass layoffs and studio closures
Final yr, Embracer ended a interval of studio closures, divestments, and layoffs by asserting it will cut up its enterprise into standalone items: Asmodee, Center-earth Enterprises & Pals, and Espresso Stain & Pals.
On the time, Embracer mentioned the cut up will “unleash the total potential of every crew and supply them with their very own management and strategic route.”Â
Earlier this yr, after carving out Asmodee and saddling it with debt, the corporate confirmed plans to spin off Espresso Stain Group and rename its remaining enterprise Fellowship Leisure (earlier working title ‘Center Earth & Pals’).
Embracer-owned studios, nevertheless, have nonetheless been jettisoning employees.Â
Final week, Tomb Raider developer and Embracer subsidiary Crystal Dynamics confirmed its third spherical of layoffs this yr. In August, Demiurge Studios, a co-development crew below the Embracer umbrella that labored on 2XKO and Marvel Snap, reportedly laid off no less than six workers members.
The information got here mere months after Embracer shared insights into its ongoing downsizing efforts. In its 2025 annual report, the corporate mentioned it decreased its headcount by 1,857 workers within the house of a yr—a interval that was marked by layoffs and divestments.Â
For context, its restructuring program had already value round 1,400 employees their jobs by the top of 2023.
Discussing the way it now intends to maneuver ahead, Embracer just lately instructed buyers it should pursue “focused value initiatives” and deploy AI know-how to unlock extra worth.
“This yr is a transition interval as we lay the foundations of Fellowship Leisure and deal with constructing a enterprise led by key IP and empowered groups, in a construction enabling focus and operational self-discipline,” mentioned Embracer boss Phil Rogers in August. “It’s paramount that we focus on the standard and long-term worth of our releases reasonably than chasing short-term positive factors.”
