Embracer to spin off indie-focused label Coffee Stain, rebrands its premium group to Fellowship Entertainment
Embracer Group has announced that it is spinning off its indie label Coffee Stain & Friends as it rebrands Middle-earth Enterprises & Friends to Fellowship Entertainment.
The details:
Embracer Group announced in April 2024 that it would split into three separate entities, each with a focus on a different area, including board games, indie and free-to-play games, and AAA premium titles. The three new companies were Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends, all of which were intended to operate independently of each other.
Just over a year later, Embracer has confirmed another internal shakeup, with Coffee Stain set to spin off and become a separate company. Coffee Stain will keep its current IPs and subsidiaries, including Coffee Stain Studios, Ghost Ship Games, and Tarsier Studios, as well as Valheim, Goat Simulator, and Deep Rock Galactic. “The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms,” Coffee Stain co-founder and Group CEO Anton Westbergh said. “We can now focus even more on what we do best—supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain.”
Embracer also confirmed that Middle-earth Enterprises & Friends will be renamed Fellowship Entertainment. However, the entity, which includes major developers such as 4A Games, Crystal Dynamics, and Warhorse Studios, will not undergo any further changes.
The Swedish firm has had a difficult few years, with a $2 billion Saudi deal falling through, resulting in widespread layoffs, closures, and project cancellations. Following the conclusion of its restructuring program early last year, it was revealed that 8% of its workforce had been laid off in just eight months.
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