After at least a year of turmoil, Swedish gaming and media holding company Embracer Group has announced its plan to split into three separate companies: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. All three new companies will be listed separately on Nasdaq Stockholm.
Asmodee will continue to focus as a publisher of board games, trading card games, and digital board games, maintaining 23 of Embracer’s studios. Coffee Stain & Friends will interhit most of the AA, indie, and free-to-play live service games under Embracer’s umbrella, focusing on PC, console, and mobile audiences. Amplifier Games, Coffee Stain, Ghost Ship, Tarsier, THQ Nordic, and Tuxedo Labs (among others) will fall under this branch. The final, new company will go by Middle-earth Enterprises & Friends, housing Embracer’s biggest and most popular AAA IPs and studios, including The Lord of the Rings, Tomb Raider, Dead Island, and Metro. Studios falling under this third company include Crystal Dynamics, Eidos Montreal, Flying Wild Hog, Warhorse, 4A, and Tripwire (among others).
Embracer Group is hoping that this new split will allow them to work different strategies and approaches concurrently without negatively impacting other aspects of the business. Embracer has been in a downward spiral since a 2 billion dollar deal they were working on fell through last year, resulting in the cutting of 1,400 jobs, canceling of almost 30 unannounced games, closing of studios such as TimeSplitters’ Free Radical Design and Saints Rows’ Volition, and selling off other studios like Borderlands’ Gearbox and Saber Interactive. Hopefully this new split allows Embracer Group to regroup and refocus on the strengths of their studios and IPs.
Image from: Embracer Group
