Embracer Group is Splitting Into Two Companies

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Okay, so Embracer Group is doing a big shake-up! They’re splitting into two companies. One will be focused on their biggest franchises – think Tomb Raider, Lord of the Rings, Metro, and Darksiders – basically all the huge games we know and love. The other company will be more about helping out smaller developers like Aspyr and Milestone, giving them a better structure to work with. It sounds like they’re trying to streamline things and let each part focus on what it does best.

Embracer Group is planning to divide into two separate companies, according to Video Games Chronicle. The new company, called Fellowship Entertainment, is expected to launch in 2027 and will focus on games based on popular franchises. These franchises include well-known titles like Tomb Raider, Darksiders, Dead Island, Kingdom Come Deliverance, Metro, The Lord of the Rings, and Remnant.

Fellowship Entertainment is bringing together a collection of well-known game developers, including 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games, and Warhorse Studios.

Embracer’s core studio will continue operating as usual, and it’s home to many different game developers like Aspyr, Beamdog, CrazyLabs, and THQ Nordic (which includes 35 studios itself). These teams, along with others such as Milestone and Limited Run Games, manage popular franchises like Destroy All Humans, Killing Floor, Gothic, and Ride, plus many more.

Embracer says this restructuring will let them keep looking for new companies to buy while a separate group, Fellowship Entertainment, focuses on managing their most valuable games and creative teams. According to Lars Wingefors, Embracer Group’s chairman, this change will allow both entities to thrive.

We’re restructuring to allow each part of the company to focus more clearly on its goals and be fully responsible for its performance. I’m very confident that Fellowship Entertainment will grow significantly in the years ahead. I’m also optimistic about the future for a more streamlined Embracer, with a strong existing collection of assets and opportunities to acquire new ones.

Embracer Group CEO Phil Rogers stated the company’s focus is on creating two separate, well-managed businesses. He explained that each business will have clear goals and a structure that promotes openness and effective work. Rogers believes this approach will ultimately benefit everyone connected to Embracer Group – including players, employees, intellectual properties, and investors.

Embracer Group faced criticism for laying off employees, shutting down studios, and cancelling projects, even after buying up many companies earlier in the 2010s. This restructuring is expected to help the company concentrate its efforts and adjust its strategy.

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2026-05-20 10:15