Embracer Group has sold off two companies that it snapped up during its acquisitions spree back in 2021, namely Cryptic Studios and Arc Games.
Cryptic Studios is the developer behind Neverwinter while Arc Games (previously Perfect World Entertainment) published Remnant: From the Ashes, with both companies having now been acquired for $30 million by Project Gold Arc funded by XD Inc. These aren’t the only studios that Embracer has since sold off during its acquisition phase; Gearbox and Saber Interactive are no longer under the Embracer umbrella, either.
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Embracer Group CEO, Phil Rogers, commented:
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. 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.
Cryptic Studios announced in November 2023 that it had been hit by a number of layoffs following its acquisition by Embracer Group two year prior. Earlier in 2023, the company announced that it had shuttered veteran Saints Row developer Volition, following the underwhelming commercial performance of its Saints Row reboot.
Back in May 2025, Embracer Group announced plans for a major shakeup for its gaming division, which resulted in the rebranding of Middle-Earth and Friends to Fellowship Entertainment, while Coffee Stain & Friends was listed as a separate company.
Embracer Group has become notorious for its well-publicised restructuring program, which finally wrapped up in March last year. One month prior to that, the company revealed that this initiative saw around 1,400 people lose their jobs, and warned that more lay offs were possible as the restructuring process continued.
[Source – Embracer Group via GamesRadar]