Embracer is back at it again, as they have entered into a definitive agreement to divest Arc Games and Cryptic Studios to Project Golden Arc, Inc., with financing from XD Inc. The net cash proceeds amount to USD 30 million. Embracer will retain the publishing rights for the Remnant franchise, however. The rights for the multiplayer online game Fellowship are also retained and will be part of the pending Coffee Stain Group spin-off company.

"This transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow. The deal also allows the online multiplayer game Fellowship, developed by a talented external team in Stockholm, to find a great home within Coffee Stain Group. I would like to thank the teams at Arc and Cryptic for their hard work over the past four years and wish them all the best, as we are confident they will thrive and develop in the years ahead,” says Phil Rogers, CEO of Embracer.

Project Golden Arc, Inc. is owned and led by members of the Arc Games management team. Arc Games is the publisher behind live service games such as Star Trek Online and Neverwinter, as well as Remnant: From the Ashes, Remnant II, Torchlight, Hyper Light Breaker, among others.

Publishing rights for the Remnant franchise will move from Arc Games to Embracer’s THQ Nordic operative group, which already owns the Remnant IP rights. Arc Games will remain as co-publisher of Remnant: From the Ashes and Remnant II, as stated in the press release.

Fellowship, which just released into Early Access last month on October 16th, 2025, is also part of Embracer’s divesting strategy. The team Chief Rebel will continue as the developer as they work toward the full 1.0 release of the game. Closing of the transaction is expected to take place as soon as customary conditions are fulfilled.

Embracer continues to stumble with all of their investments around the world. After buying studio after studio, we’ve seen them close reputable studios that have been a part of the industry for years, such as the closure of Volition, a studio of 30 years and the team behind Saints Row. Gearbox and Saber Interactive were also hit with layoffs, and in turn, both studios have moved on from under the Embracer umbrella.

Is this the end of the Embracer layoffs? Will they be able to save the company? Crystal Dynamics is still currently working on the next installment in the Tomb Raider series. However, that’s not likely enough to sustain the company’s pitfalls, with one continuous closure, layoff, and beyond when it comes to Embracer. Some consider it one of the worst-run companies in gaming history. Things might have been discussed in a different light had the $2 billion investment gone through, although it still seems unlikely.

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