Embracer Sells Arc Games & Cryptic Studios
▼ Summary
– Embracer has sold Arc Games and Cryptic Studios to Project Golden Arc, a new entity led by Arc Games management and funded by Hong Kong’s XD Inc.
– The sale includes live service games Star Trek Online, Neverwinter, and the Remnant series, with proceeds totaling $30 million.
– Embracer retains publishing rights to the Remnant franchise and will assign MMO Fellowship to Coffee Stain, which is planned to be spun out in December.
– CEO Phil Rogers stated the deal strengthens Embracer’s focus on strategic assets, improves profitability, and provides a home for Fellowship within Coffee Stain Group.
– This divestment is part of Embracer’s unwinding of rapid expansion after a failed $2 billion partnership, with the company reporting recent net losses.
In a significant move to streamline its operations, Embracer Group has completed the sale of Arc Games and Cryptic Studios to a newly formed company, Project Golden Arc. This acquisition is spearheaded by the existing management team at Arc Games and receives financial backing from Hong Kong’s XD Inc. The transaction, valued at $30 million (approximately SEK 287 million), marks another step in Embracer’s ongoing strategy to refocus its business priorities.
Arc Games serves as the publisher for several well-known live service titles, including Star Trek Online, Neverwinter, and the Remnant series, in addition to Torchlight and Hyper Light Breaker. Cryptic Studios, on the other hand, is the original developer behind both Neverwinter and Star Trek Online. Despite the sale, Embracer will maintain publishing rights for the Remnant franchise, which is developed by Gunfire Games, and will also retain rights to the MMO Fellowship, created by Chief Rebel and currently available in Early Access. Fellowship is slated to be transferred to Coffee Stain, a studio expected to spin off from Embracer this December.
Phil Rogers, CEO of Embracer, emphasized that the deal aligns with the company’s core objectives. He stated that it strengthens their focus on strategic assets and key intellectual properties, while also enhancing profitability and cash flow. Rogers expressed confidence in the future success of Arc and Cryptic under their new ownership and noted that Fellowship will benefit from its new home within the Coffee Stain Group.
These studios were originally part of Perfect World before Embracer’s acquisition in 2021, after which they operated under the name Gearbox Publishing San Francisco. Embracer later sold Gearbox in 2024. The current divestment is part of a broader effort to unwind the aggressive expansion pursued under founder and former CEO Lars Wingefors. That expansion came to an abrupt halt when a planned $2 billion partnership, widely reported to involve Saudi Arabia’s Savvy Games Group, fell through. Embracer reported a net loss of SEK 23 million for the latest quarter, with total income for the period standing at SEK 203 million.
(Source: Games Industry)