Embracer's divestment campaign continued today after the Swedish conglomerate agreed to sell Arc Games and Cryptic Studios in a move expected to generate net cash proceeds of $30 million.
Arc Games is best known for its work on the Remnant franchise, while Cryptic Studios is the developer of Neverwinter and Star Trek Online.
Both companies are being acquired by Project Golden Arc, Inc., which is owned and operated by members of the Arc Games management team. The deal is being financed by XD Inc., a global developer and publisher listed on the Main Exchange of the Hong Kong Stock Exchange.
Embracer will retain publishing rights to the Remnant franchise. These rights will be transferred to THQ Nordic, which already owns the Remnant IP and development studio Gunfire Games.
It will also retain the rights to online fantasy games. Scholarshipwhich Arc Games published this year. They will be combined into the expected spin-off of the Coffee Stain Group, which was announced back in May as part of a plan to split Embracer into three separate publicly traded companies.
Stockholm studio Chief Rebel will continue development Scholarship (now in early access) with a team of about 35 people.
“This transaction supports our key priorities by enhancing our focus on Embracer's strategic assets and core IPs while improving profitability and free cash flow,” said Embracer CEO Phil Rogers.
“The deal will also allow the online multiplayer game Fellowship, developed by a talented external team based in Stockholm, to find a great home within the Coffee Stain Group. I would like to thank the Arc and Cryptic teams 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 to come.”
Embracer tries to reboot after mass layoffs and studio closures
Last year Embracer completed a period studio closures, asset sales and layoffs announcing that it would be divide your business into separate divisions: Asmodeus, Middle-earth Enterprises & Friends and Coffee Stain & Friends.
At the time, Embracer said the split would “unlock the full potential of each team and provide them with their own leadership and strategic direction.”
Earlier this year after slaughtering Asmodeus and saddled him with debtThe company confirmed plans to spin off the Coffee Stain Group and rename the remaining business Fellowship Entertainment (previously the working title “Middle Earth & Friends”).).
However, Embracer-owned studios are still laying off employees.
Last week, Tomb Raider developer and Embracer subsidiary Crystal Dynamics confirmed the third round of layoffs this year. In August, Demiurge Studios, a development group under the Embracer umbrella, was working on 2HKO And Marvel Snap, at least six employees have reportedly been fired.
The news comes just months after Embracer shared information about its ongoing workforce reduction efforts. This is stated in the company's annual report for 2025. reduced staff by 1857 employees during the year, a period that was marked by layoffs and asset sales.
For context, his restructuring program has already about 1,400 workers cost jobs by the end of 2023.
Discussing how the company now intends to move forward, Embracer recently told investors it will implement “target cost initiatives” and implement artificial intelligence technologies to reap greater benefits.
“This year is a period of transition as we lay the foundations of Fellowship Entertainment and focus on building the business, led by key IP experts and empowered teams, in a structure that provides focus and operational discipline,” Embracer boss Phil Rogers said in August. “It is important that we focus on the quality and long-term value of our releases, rather than the pursuit of short-term gains.”
