Embracer splits into three companies following mass layoffs and canceled games

Following a restructuring that cost over 1,300 jobs, Embracer Group is splitting into three companies to operate different strategies.

Tom West

Published 22 Apr 2024

Embracer Group completed its restructuring process last month, which saw over 1,300 layoffs, almost 30 games canceled, and a number of studios closed. Now, the company has announced that Embracer Group is splitting into three companies: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends, which will each be listed as separate companies on Nasdaq Stockholm.

Embracer Group separates into three separate businesses

embracer group splitting into three companies

After years of mass acquisitions and mergers, Embracer Group announced that it had to restructure in June 2023 when an undisclosed $2 billion deal fell through. The company then went on to close numerous studios and cancel a host of games, including a new Deus Ex game. The restructuring process ultimately resulted in over 1,300 layoffs by the time it was completed last month, following the sale of Saber Interactive and Gearbox.

As per an announcement from Embracer Group's co-founder and group CEO Lars Wingefors, the new split will help each business focus on its own strategy. "This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction. This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed, and supportive shareholder of all three new entities, with an evergreen horizon," Wingefors said. "This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe."

Asmodee features 23 studios and over 300 IPs as the group's publisher and distributor of physical and digital board games and trading cards.

Coffee Stain & Friends will focus on indie and AA games, free-to-play titles, and LiveOps games across consoles, PC, and mobile. It will have both free and premium divisions, with the latter consisting of developers such as Coffee Stain, THQ Nordic, Ghost Ship, Tarsier, and Tuxedo Labs, and currently houses over 200 IPs. Titles like Deep Rock Galactic, Goat Simulator, Wreckfest, Teardown, Valheim, D&D Neverwinter Online, and more will operate under the Coffee Stain & Friends banner.

As for Middle-earth Enterprises & Friends, it will be the group's "creative powerhouse in AAA game development and publishing for PC/console, and the stewards of The Lord of the Rings and Tomb Raider intellectual properties." Studios under the Middle-earth Enterprises & Friends banner will include Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios, and 4A Games. It'll also include other businesses like Plaion, Freemode, Dark Horse, and more, and will also be the new home to a number of IPs, including The Lord of the Rings, Tomb Raider, Dead Island, Metro, Kingdom Come Deliverance, and Killing Floor.

If you missed it last week, Warhorse Studios announced Kingdom Come Deliverance 2, which looks awesome and will launch on Xbox Series X|S later this year.

Industry News

Written by Tom West

Tom has been playing video games since he was old enough to hold a controller, experimenting with a number of systems until he eventually fell in love with Xbox. With a passion for the platform, he decided to make a career out of it, and now happily spends his days writing about that which he loves. If he’s not hunting for Xbox achievements, you’ll likely find him somewhere in The Elder Scrolls Online or fighting for survival in Battlefield.