Gaming giant Embracer Group, after recently splitting with Saber Interactive, in its latest move, is splitting into three new entities. The Lord of the Rings owner says it will allow the new companies to focus better on their respective works. The companies include Middle-earth Enterprises & Friends, Asmodee Group, and Coffee Stain & Friends.
It may come as a surprise to many as news surrounding the company during the year 2023 and the better half of 2024 were filled with either layoffs or splitting off with studios. It also entered an agreement with Take-Two Interactive to sell Brothers in Arms creator Gearbox which the Rockstar parent believes will add strength to the company.
Embracer Group Setting up For Making Waves in the Market, Hopefully
As for the roles, Asmodee is to focus on tabletop games, Coffee Stain & Friends on A/AA premium alongside F2P for PC, and Middle-earth Enterprises & Friends on AAA video games for both PC and consoles. All in all, the new companies collectively own over 500 IPs including Kingdom Come Deliverance, Goat Simulator, Dead Island, and more.
Embracer writes in the official statement:
This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.
Since June 2023, the company has gone through a lot of restructuring, cutting the headcount by around 1,300 while also canceling a lot of games in the process. Embracer is struggling to stay afloat in the market after their $2 Billion investment fell through.
It seems like the gaming fans began hating the company but don’t seem to look behind the scenes. In that case, Saber Interactive founder Matthew Karch supported the company, saying that Embracer “seems to be a company these days that everyone likes to pick on.”
The Gaming Market in Pickle Forcing Companies To Go Sustainable Ways
Now that it’s separated into three companies, appears like all will focus on making it leaner, stronger, and more self-sufficient as the restructuring was intended. Previously, when the company was on a games-killing spree, it canceled a Dues Ex sequel which was reportedly under development for two years.
The gaming market is in a pickle right now whether it’s a matter of in-game content or video games itself. Gaming giant Sony also canceled a Spider-Man game titled The Great Web. Prior to that, it killed Twisted Metal game which, like many others, was reportedly under development.
Following the news of the split, the company’s shares jumped by a tenth as reported by Financial Times. According to Citigroup, it was “a more extreme step” than they expected. Moreover, the move does make sense given the discomfort “the market has with [its] financial leverage.”
What do you think about the company’s move? We would like to know your thoughts on this in the comments section.
