Embracer Group, one of the most talked-about conglomerates in gaming over the last year or so, has announced a shock split. It was revealed earlier today that Embracer will separate into three individually listed companies, dropping the Embracer Group name and adopting three fresh titles. This has been designed as a ‘transformative step for value creation’, and it comes following a year of layoffs, studio closures, and project cancellations at the Embracer Group.
In the last year, the Embracer Group has become a boogeyman of the industry. It has become synonymous with the devastating trend of redundancies that swept the industry – some 20,000 industry workers have lost their jobs since the start of 2023. However, it was a few weeks ago that the Embracer Group confirmed there would be no more layoffs – but this monumental and divisive change might bring about more redundancies.
One Becomes Three
It was revealed through a press release from the Embracer Group that the company will split into three all-new ‘games and entertainment companies’:
- Asmodee Group
- Coffee Stain & Friends
- Middle-Earth Enterprises & Friends
These companies will all be listed on the NASDAQ in Stockholm. It was confirmed that the current CEO of Embracer Group, Lars Wingefors, will retain a ‘supportive ownership’ position over all three entities, which again doesn’t fill some gamers with a sense of jubilation. It’s an interesting split – here’s how it’ll work.
Asmodee Group
The Asmodee Group will be responsible for creating and publishing tabletop games, card games, and digital board games. Presently, the Asmodee Group is made up of 23 fully owned studios and more than 300 IPs.
Coffee Stain & Friends
Coffee Stain & Friends will be focused on producing and publishing indie and A/AA games for a global market spread across PC, console, and mobile platforms. This company will also focus on live service and free-to-play games.
Middle-Earth Enterprises & Friends
Middle-Earth Enterprises is the ‘creative powerhouse’ of the trio, picking up labels like The Lord of the Rings and Tomb Raider, ‘among many others’. This will be the portion of the trio responsible for crafting premium, big-budget titles. This is where the likes of Warhorse Studios, 4A Games, Dambuster Studios, and Crystal Dynamics will all ‘live’.
Lars Wingefors, the CEO of Embracer Group, spoke highly of the gargantuan restructuring effort:
‘This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction. This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed, and supportive shareholder of all three new entities, with an evergreen horizon. This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe”.
It’s an epic change, and much of the community can see the benefit in it. Each company is free to manage its own balance sheet, targets, and financial structure. Only time will tell how this ambitious move pays off.
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