After some major internal restructuring after the $2 billion deal with Savvy Games Group fell through, the Swedish business firm will be breaking up into three separate companies. Embracer Group will now become Middle-Earth Enterprises & Friends, Coffee Stain & Friends, and Asmodee Group. This decision follows the decision to let go of around 1,387 staff members after acquiring many major studios including Eidos Montreal and Volition.
These three separate companies are intended to form a new ownership structure within the company and Embracer has said that this new structure “will remain a long-term, active, committed and supportive owner of all three entities,”. As for what each new company will focus on: Asmodee will primarily focus on publishing tabletop games. Coffee Stain & Friends will be aimed towards the indie scene as well as A/AA and free-to-play games for several platforms including mobile. Meanwhile, Middle-earth Enterprises & Friends will be focused on the development and publishing of AAA games for both PC and consoles, and will also maintain projects related to The Lord of the Rings IP.
So far, each company has a rather impressive roster of studios and IPs at their disposal. Asmodee has several tabletop projects in the works including the likes of Marvel, The Lord of the Rings, LEGO and even some Netflix projects. Coffee Stain & Friends includes the likes of Tuxedo Labs and THQ Nordic. While Middle-earth Enterprises & Friends includes the likes of Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios
Only time will tell if this new business structure will yield any fruit or will we get more canceled projects such as the Deus Ex title that was in development for two years. So far, things seem promising as Embracer’s CEO, Lars Wingefors, says “This is the start of a new chapter, a chapter that I intend to remain part of as an active, committed, and supportive shareholder of all three new entities, with an evergreen horizon. 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.”
