At some point, Embracer was a treasured bride in the video game industry that every budding studio wanted to associate with. That era came to a disastrous end in 2023 with a restructuring that saw the closure of several studios and the divestment of portfolio companies the following year.
The company has now announced the divestment of two more studios, according to a press release. Embracer has entered into a definitive agreement to divest Arc Games and Cryptic Studios to Project Golden Arc Inc. The acquisition will be financed by XD Inc., a global video games developer and publisher.
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The net cash proceeds from the deal is $30 million. Although the Remnant franchise was published by Arc Games, which now has a new owner, Embracer will retain the publishing rights to the franchise. Consequently, the publishing rights for the Remnant franchise will be transferred to THQ Nordic. However, Arc Games will continue to be listed as the co-publisher of Remnant: From the Ashes and Remnant II.
“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 the CEO of Embracer in reaction to the divestment.
“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.”
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Arc Games was also behind the publishing of two live service games, Star Trek Online and Neverwinter. Cryptic Studios supported the development of both games. The rights of the multiplayer online game, Fellowship, will also be transferred to Coffee Stain. Fellowship was developed by Chief Rebel, a Stockholm-based studio. The game launched into Early Access on October 16, 2025.
Do you see Embracer shedding more portfolio in the near future, or have they finally arrived at the right size? Share your thoughts in the comment box below.
