Embracer Group Struggles To Embrace The Future Of Gaming
Video game publishing behemoth Embracer Group is planning to break apart its massive business and divide its assets among different studios.
Sadly Embrace Group do not rename themselves after The Division
After years of collecting game studios and a whole host of IP like Infinity Stones, Embracer Group are no longer embracing the concept of owning everything in existence. Instead, as part of their financial strategy report for 2025/2026, it appears that Embracer will spin off some of its businesses to hopefully increase the company’s overall financial health and provide additional value to their shareholders.
Embracer currently has over 70 games in development, which it plans on leveraging to drive further profits and additional investments from shareholders while hopefully enticing new ones. These games will remain unaffected at their respective studios while the split takes place. While Embracer will split off Coffee Stain Group into its own division, they will also be rebranding themselves as Fellowship Entertainment after the Lord of the Rings IP they currently have control over.
Coffee Stain Group will be focusing on continuing live-service games and those with recurring updates, such as Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg. Meanwhile, Fellowship Entertainment will retain ownership of other IPs such as Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant and Tomb Raider, “amongst more than 300 other gaming IPs.”
CEO Lars Wingefors’ own private investment company, Lars Wingefors AB (great name, by the way, very original), will be creating a new privately held company named Embracer AB (noticing a theme here), as LWAB is the largest shareholder. Embracer AB will be interactive and support Coffee Stain and Fellowship as a long-term shareholder.
This appears to be the latest way for Embracer to try and mitigate recent financial troubles, and we will see just how well they fare in the coming months and years. How do you feel about such a large company needing to break off into smaller groups? Let us know in the comments.
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