Embracer Group sells Arc Games and Cryptic Studios as restructuring continues

Embracer Group has sold publisher Arc Games and developer Cryptic Studios to Project Golden Arc, Inc., in a $30 million deal financed by Hong Kong-based publisher and developer XD Inc.

The details:

• As announced by the Swedish firm, Neverwinter developer Cryptic Studios and Remnant publisher Arc Games have been sold to Project Golden Arc, Inc., which is owned by the Arc Games management team. The deal worth $30 million will see the rights to the Remnant series remain at Embracer under the THQ Nordic label but has ultimately been a major loss for the company after it originally acquired both studios in 2021 for $125 million.
• Coffee Stain will also gain the rights to online title Fellowship, though the indie-focused publisher is scheduled to be spun off from Embracer and publicly listed on December 11, 2025.
• Embracer CEO Phil Rogers stated that "this transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow," adding that the deal allows Fellowship "to find a great home within Coffee Stain Group" and thanking the teams at Arc and Cryptic for their work over the past four years.
• Embracer Group is still struggling after a multi-billion dollar agreement with Saudi investors fell through last year. As a result, it has been forced to sell or close several studios, cancel projects, and lay off thousands of employees in order to stay afloat after it had overexpanded with a spending spree in the two years prior.