Highlights
- Embracer Group sells Arc Games and Cryptic Studios to Project Golden Arc in a $30M management-led acquisition.
- The deal adds to Arc Games acquisition news as Embracer retains Remnant rights and shifts Fellowship to Coffee Stain.
- The move outlines why Embracer Group sold Arc Games, with the Embracer Group Arc Games sale tied to ongoing restructuring after a halted $2B partnership.
Embracer Group has sold Arc Games and Cryptic Studios to Project Golden Arc, an entity formed by Arc Games management and funded by Hong Kong firm XD Inc. The SEK 287M (approximately $30M) deal is the latest step in Embracer’s ongoing restructuring.
Arc Games publishes Star Trek Online, Neverwinter, the Remnant series, Torchlight, and Hyper Light Breaker. Cryptic Studios developed Star Trek Online and Neverwinter. The two studios were previously part of Perfect World, which Embracer acquired in 2021 and later folded into Gearbox Publishing San Francisco. Embracer sold Gearbox in 2024.
Embracer will keep publishing rights to the Remnant franchise from Gunfire Games and the rights to Fellowship, an MMO in Early Access from Chief Rebel. The company will assign Fellowship to Coffee Stain, which is planned to be spun out in December.
CEO Phil Rogers said the transaction supports Embracer’s priorities by “strengthening our focus on strategic assets and core IPs,” and by improving free cash flow. He also said Fellowship will “find a great home within Coffee Stain Group” and thanked the studios for their “hard work over the past four years.”
Embracer Group Sells Arc Games as Part of Portfolio Reduction
The sale continues Embracer’s unwinding of its previous expansion under founder and former CEO Lars Wingefors. That growth halted after a planned $2B partnership, reportedly involving Savvy Games Group, did not proceed, creating financial pressure across the company.
Embracer reported a net loss of SEK 23M (approximately $2.4M) for the quarter and total income of SEK 203M (approximately $21.3M) for the period. By selling Arc Games and Cryptic Studios, the group reduces its exposure to live-service operations while focusing on franchises it retains, including Remnant.
Star Trek Online, Neverwinter, and other Arc Games titles now move under Project Golden Arc as Embracer continues its long-term restructuring.
