Embracer has divested Arc Games and Cryptic Studios

Embracer Group has sold two of its studios, Arc Games and Cryptic Studios. These companies have been bought by Project Golden Arc, a new venture led by Arc Games' management team, with funding from the Hong Kong company XD Inc.

Arc Games is known for publishing games like Star Trek Online, Neverwinter, and the Remnant series, alongside Torchlight and Hyper Light Breaker. Cryptic Studios developed Neverwinter and Star Trek Online. The transaction was valued at $30 million (SEK 287 million), according to the company.

Despite the sale, Embracer keeps the publishing rights to the Remnant series, created by Gunfire Games, and the rights to the MMO Fellowship, which is in Early Access and developed by Chief Rebel. Coffee Stain will handle the latter, as it is slated to leave Embracer by December.

Phil Rogers, Embracer's CEO, stated, "This transaction aligns with our objectives by enhancing our focus on strategic assets and key intellectual properties at Embracer, while also boosting profitability and free cash flow. The deal secures a suitable future for the MMO game Fellowship at Coffee Stain Group. My gratitude goes to the teams at Arc and Cryptic for their dedication over the past years, and I have full confidence they will succeed and evolve going forward.”

Arc Games and Cryptic Studios were formerly owned by Perfect World, which Embracer purchased in 2021, rebranding it as Gearbox Publishing San Francisco. Gearbox was sold off by Embracer in 2024.

This divestiture continues the unraveling of Embracer's earlier rapid growth strategy initiated by founder and ex-CEO Lars Wingefors. This expansion came to a halt following an unfulfilled $2 billion deal, allegedly involving Saudi Arabia's Savvy Games Group. Recently, the company reported a net loss of SEK -23 million for the last quarter, resulting in a total income of SEK -203 million for that period.