Embracer Group Splitting Into Three Separate Companies

According to an official press release today, Embracer Group announced plans to split into three separate games and entertainment companies.

The companies will include Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. The latter two names might be temporary, since Embracer mentions their “official name will be decided at a later stage.” But for now, they do hint at Embracer’s larger priorities.

Asmodee will continue its work on tabletop. Coffee Stain & Friends will concentrate on PC, console and mobile games, operating under Premium and Free to Play segments. Among others, Goat Simulator developer Coffee Stain and South Park: Snow Day publisher THQ Nordic will fall within Premium.

crystal dynamics

Middle-earth Enterprises & Friends will lead both Lord of the Rings IP and Tomb Raider, as home to Crystal Dynamics. It will also house Flying Wild Hog Studios, Tripwire, PLAION, and a variety of other creative teams.

Embracer Group says that Middle-earth Enterprises & Friends will be “a more transparent entity,” working on more AAA games.

This split follows a massive series of changes at Embracer, which faced serious fan backlash over its extensive layoffs. For example, Embracer canceled a Deus Ex game and laid off staff at Eidos Montreal. That team will now fall under Middle-earth Enterprises & Friends.

In February, an Embracer financial report suggested the company’s key principle is “maximizing shareholder value.” Embracer Group has shut down, sold, and laid off employees at a wide range of teams. Most recently, it sold Saber Interactive, and also sold Gearbox Entertainment.

For more of the latest Insider Gaming news, you can read about multiple insiders claiming that Sonic Frontiers 2 is already in development.