Embracer Group Sells Cryptic Studios and Arc Games but Retains Publishing Rights to Remnant and Fellowship
The Embracer Group has announced a major structural move with the divestment of Cryptic Studios and Arc Games. According to the official Embracer Group announcement, both companies have been acquired by a newly formed entity called Project Golden Arc Inc., supported by funding from XD Inc. Project Golden Arc Inc. is owned and led by senior members of the Arc Games management team, marking a transition of control to leadership already familiar with the business.
Cryptic Studios, based in California, is a long standing developer particularly known for massive multiplayer online role playing games such as City of Heroes, Champions Online, Star Trek Online and Neverwinter. Neverwinter recently launched its latest module Red Harvest Part II The Soul Collector. Arc Games, which handled publishing responsibilities for Cryptic’s titles, is included in the acquisition.
The divestment is expected to generate approximately 30 million dollars in net cash proceeds for the Embracer Group. While the sale is significant, both parties have agreed that Embracer will retain strategic publishing rights to key properties.
The publishing rights to the Remnant franchise will remain with the Embracer Group and are being transitioned to internal publisher THQ Nordic. THQ Nordic already holds the Remnant intellectual property and oversees Gunfire Games, the development studio responsible for both Remnant titles. Gunfire Games is currently focused on the next entry in the Darksiders franchise.
Additionally, the publishing rights for Fellowship, referred to as a MODA or Multiplayer Online Dungeon Adventure title, will transfer from Arc Games to Coffee Stain, another division of the Embracer Group. Coffee Stain is expected to be spun off and listed on Nasdaq First North Premier Growth Market in Stockholm, with the first day of trading planned for December 11, 2025. Although publishing will shift to Coffee Stain, Arc Games will continue to be credited as a co publisher.
Fellowship is developed by Chief Rebel, a Stockholm based studio with a team of roughly 35 developers. The game launched in Early Access on PC on October 16, 2025, and the team is targeting a full release during the first half of 2026. The title is currently discounted at 20% on Steam ending on December 4, 2025.
This restructuring move continues Embracer’s broader multi year strategy of refocusing its internal divisions, consolidating high value intellectual properties and streamlining operational responsibilities. While the divestment of Cryptic Studios and Arc Games marks a notable change, the retention of Remnant and Fellowship publishing rights indicates Embracer’s continued investment in long term franchises with strong growth potential.
Do you believe Embracer’s restructuring strategy is positioning the company for stability or is the group still in a period of uncertainty
