They will specialize in AAA titles, board games, and independent games.
Embracer Group reorganizes after significant losses
Following recent financial difficulties, including a $2 billion investment failure, Embracer Group is gearing up for a major transformation. The group has revealed plans to split into three distinct and publicly traded entities, according to Bloomberg.
The group’s new entities
The first entity, Middle-earth Enterprises & Friends, will focus on AAA games, including Dead Island, Kingdom Come Deliverance, and The Lord of the Rings. Studios like Crystal Dynamics and Eidos-Montréal will fall under its umbrella.
The second one, Asmodee, will oversee the group’s board game segment, featuring titles like CATAN and Dobble.
Lastly, the third entity, Coffee Stain & Friends, will emphasize independent games, including Deep Rock Galactic and Goat Simulator.
A fresh start for Embracer Group
“This move has been made with the intention of unleashing the full potential of each team and providing them with their own leadership and strategic direction,” said Lars Wingefors, CEO of Embracer Group.
A tough time for the group
Despite successful acquisition spree between 2019 and 2022, the group had to restructure due to the loss of a $2 billion partnership deal. This led to an 8% workforce reduction, approximately 1,400 employees. The sale of Gearbox for $460 million, a fraction of its initial $1.3 billion valuation, also marked this challenging episode.
Ultimately, Embracer Group’s transformation signals a new strategic upturn after a period of significant losses.