Embracer Group is undergoing a major transformation, dividing itself into three distinct companies. This announcement was made by the Swedish gaming conglomerate on Monday, signaling a new direction for the organization. The three new companies will each have their own focus, catering to different segments of the gaming industry.
The three separate entities will be known as Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. This strategic move will enable each company to concentrate on their core strategies, as stated in a press release by Embracer. All three companies will be publicly listed on the stock exchange, showcasing their individual specialties.
The current Embracer Group will be rebranded as Middle-earth Enterprises & Friends, with a primary focus on developing and publishing triple-A games for PCs and consoles. The company will also handle the intellectual property rights for iconic franchises like Lord of the Rings and Tomb Raider. Additionally, they retain ownership of popular titles such as Dead Island, Killing Floor, and Kingdom Come: Deliverance. The company also boasts ownership of renowned studios like Crystal Dynamics, Eidos-Montréal, Tripwire, 4A Games, and Vertigo Games.
Asmodee Group will specialize in publishing and distributing tabletop games, including well-known titles like Catan, 7 Wonders, and Ticket to Ride. They are also working on tabletop games based on popular franchises such as The Lord of the Rings, Marvel, Game of Thrones, and Star Wars. Coffee Stain & Friends will focus on indie games, as well as A-, AA-, and free-to-play games for various platforms like PCs, consoles, and smartphones. Some of the titles under this company include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim.
Embracer Group has been actively acquiring companies in recent years, securing franchises like Tomb Raider and Lord of the Rings, as well as owning Gearbox, the maker of Borderlands. However, the company has embarked on a restructuring process following a missed $2 billion partnership deal last year. This has led to layoffs and project cancellations. Most recently, Embracer sold Gearbox to Take-Two for a fraction of the price they paid for the company three years ago.
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