Embracer divests Arc Games and Cryptic Studios

Embracer’s investment-turned-divestment spree continued right this moment after the Swedish conglomerate agreed to divest Arc Games and Cryptic Studios in a transfer that’s anticipated to generate web money proceeds of $30 million.

Arc Games is finest recognized for engaged on the Remnant franchise, whereas Cryptic Studios is the developer behind Neverwinter and Star Trek Online. 

Both firms are being bought by Project Golden Arc, Inc., which is owned and led by members of the Arc Games administration staff. The deal is being financed by XD Inc., a worldwide developer and writer listed on the Main Board of the Hong Kong Stock Exchange.

Embracer is about to retain the publishing rights for the Remnant franchise. Those rights shall be transferred to THQ Nordic, which already owns the Remnant IP and growth studio, Gunfire Games.

It may also retain the rights to on-line fantasy title, Fellowship, which Arc Games printed this 12 months. They shall be bundled into the pending Coffee Stain Group spin off, which was introduced again in May as a part of a plan to separate Embracer into three standalone, publicly-listed firms.

Stockholm-based studio Chief Rebel will proceed creating Fellowship (at the moment in early entry) with a staff of round 35 individuals.

“This transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow,” stated Embracer CEO, Phil Rogers.

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“The deal also allows online multiplayer game Fellowship, developed by a talented external team in Stockholm, to find a great home within Coffee Stain Group. I would like to thank the teams at Arc and Cryptic for their hard work over the past four years and wish them all the best as we are confident they will thrive and develop in the years ahead.”

Embracer trying to reset after mass layoffs and studio closures

Last 12 months, Embracer ended a interval of studio closures, divestments, and layoffs by asserting it could cut up its enterprise into standalone models: Asmodee, Middle-earth Enterprises & Friends, and Coffee Stain & Friends.

At the time, Embracer stated the cut up will “unleash the full potential of each team and provide them with their own leadership and strategic direction.” 

Earlier this 12 months, after carving out Asmodee and saddling it with debt, the corporate confirmed plans to spin off Coffee Stain Group and rename its remaining enterprise Fellowship Entertainment (earlier working identify ‘Middle Earth & Friends’).

Embracer-owned studios, nonetheless, have nonetheless been jettisoning staff. 

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Last week, Tomb Raider developer and Embracer subsidiary Crystal Dynamics confirmed its third spherical of layoffs this 12 months. In August, Demiurge Studios, a co-development staff underneath the Embracer umbrella that labored on 2XKO and Marvel Snap, reportedly laid off a minimum of 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 stated it lowered its headcount by 1,857 staff within the house of a 12 months—a interval that was marked by layoffs and divestments. 

For context, its restructuring program had already price round 1,400 staff their jobs by the top of 2023.

Discussing the way it now intends to maneuver ahead, Embracer lately advised buyers it is going to pursue “targeted cost initiatives” and deploy AI know-how to unlock extra worth.

“This year is a transition period as we lay the foundations of Fellowship Entertainment and focus on building a business led by key IP and empowered teams, in a structure enabling focus and operational discipline,” stated Embracer boss Phil Rogers in August. “It is paramount that we concentrate on the quality and long-term value of our releases rather than chasing short-term gains.”