Embracer Group, after finishing up its restructuring plan that saw mass layoffs, studio closures, canceled projects, and sales of additional studios, is splitting into three standalone companies, each with their own specific goals.
The three companies will be Asomodee Group, Coffee Stain & Friends, and Middle-Earth Enterprises & Friends. The latter two may get new names down the line.
Middle-Earth Enterprises & Friends will be home to “immersive world-class entertainment IPs”, Embracer CEO Lars Wingefors says in the announcement. This means AAA PC and console IP, along with other media IPs like Dark Horse Comics. This division will also be the home for Crystal Dynamics, Tripwire, Flying Wild Hog, and Vertigo Games, with IPs like The Lord of the Rings, Tomb Raider, Dead Island, Metro, and Killing Floor.
Coffee Stain & Friends will be the home for “community-driven games for PC/Console and Mobile”. Studios under this new company include Deca and Cryptic Studios under the free to play division, which will include Star Trek Online, Neverwinter, and Champions Online. On their premium end will be Tuxedo Labs, Ghost Ship, THQ Nordic, and of course, Coffee Stain. Games under Coffee Stain as a company include Valheim, Goat Simulator, and Wreckfest.
Asmodee is going to continue as the tabletop arm, with Catan, Ticket to Ride, 7 Wonders, Exploding Kittens, and more.
Middle-Earth Enterprises & Friends will be within Embracer Group, while the others will get new tock exchange listings as they are spun off. These moves will happen over this year and next, with Asmodee first within the year, and Coffee Stain next year.
According to Wingefors, this is a strategic move intended to set each company up for more success, but doesn’t rule out collaboration.
“The similarities between the businesses that will make up Asmodee, “Coffee Stain & Friends” and “Middle-earth Enterprises & Friends” are striking, but so are also the differences when it comes to go-to-market strategies and business profiles. All the companies have bright futures ahead, by perfecting what is working for each of them, and by continuing to cooperate when it makes sense,” he said.
