Embracer is selling off yet another two studios from its expansive portfolio, following years of acquisitions and layoffs as part of a lengthy restructuring programme.
Today, the Swedish company announced it will divest Arc Games and Cryptic Studios for $30m to Project Golden Arc. Arc Games (formerly known as Perfect World Entertainment and Gearbox Publishing San Francisco) was responsible for publishing Star Trek Online, Neverwinter, Remnant: From The Ashes, and more. Cryptic Studios was the developer of Star Trek Online and Neverwinter, among others.
As part of the deal, Embracer will retain the publishing rights for the Remnant franchise, and the rights for MMO Fellowship will be moved internally to Coffee Stain Group.
“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,” said Embracer CEO Phil Rogers in a statement.
“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 acquired the two companies back in 2021 as part of a notoriously grand acquisition spree. However, when $2bn of investment into Embracer collapsed (reportedly with Saudi Arabia’s Savvy Games), Embracer was forced to drastically restructure.
The “comprehensive restructuring program” began back in 2023. Last year, both Saber and Gearbox were sold off.
By May 2024, Embracer’s staff headcount had plummeted by 4532 employees in a year, while 44 studios had been closed and 80 in-development projects were dropped.
In June this year, former Embracer CEO Lars Wingefors announced he was stepping down from his role (but remains executive chair of the board), with Rogers taking over as CEO. It would seem, however, the company is still struggling with the fallout of its multiple acquisitions.
