In a strategic move, Embracer Group has unveiled its decision to divide into three distinct companies. Initially established in 2011 as Nordic Games Licensing, Embracer has evolved into a significant player in the gaming industry by acquiring the IPs of defunct publishers like JoWooD and THQ.

Starting in 2019, Embracer intensified its acquisition spree, incorporating various developers and publishers into its fold, such as Saber Interactive, Gearbox Entertainment, Demiurge, and more. Following the acquisition of Square Enix Montreal in August 2022, Embracer initiated a series of cost-cutting measures, including shutting down mobile games and studios, as well as canceling projects.

The recent announcement reveals Embracer's plan to split into three independent companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. These entities will operate separately as publicly listed companies, each assuming responsibility for a segment of Embracer's diverse portfolio.

Embracer's Division into Three Standalone Companies

• Asmodee Group: Specializes in tabletop games publishing and distribution.
• Coffee Stain & Friends: Focuses on indie and premium games for various platforms.
• Middle-earth Enterprises & Friends: Concentrates on AAA game development and publishing, including iconic franchises like The Lord of the Rings and Tomb Raider.

Asmodee, a French company acquired by Embracer in 2021 and rebranded as Twin Sails Interactive in 2022, will continue its tabletop games operations independently. Coffee Stain & Friends, known for titles like Deep Rock Galactic and Goat Simulator, will maintain its focus on indie gaming. Middle-earth Enterprises & Friends will oversee the development of AAA games, including renowned franchises such as The Lord of the Rings and Tomb Raider.