The Embracer Group has made headlines this morning with a significant business move involving the sale of two of its subsidiaries. Cryptic Studios and Arc Games are set to be acquired by a newly formed entity, Project Golden Arc, Inc., which has secured funding from XD Inc. The new company is spearheaded by individuals from the Arc Games management team, indicating a familiar hand at the helm. Cryptic Studios, based in California, has garnered recognition for its MMORPGs, such as City of Heroes, Champions Online, Star Trek Online, the now-discontinued Magic: Legends, and Neverwinter, which recently launched its Red Harvest Part II – The Soul Collector module.
A Lucrative Deal and Strategic Retentions
The financial implications of this deal are substantial, with Embracer Group poised to gain approximately $30 million in net cash proceeds. An essential clause of the agreement ensures that Embracer retains the publishing rights for the popular Remnant franchise, which will be managed under the THQ Nordic label. THQ Nordic, already in possession of the Remnant IP rights and the development studio Gunfire Games, continues its work on the upcoming Darksiders 4.
Fellowship and Its Future
In another strategic shift, the ‘MODA’ game Fellowship will see its publishing rights transition from Arc Games to Embracer Group’s Coffee Stain division. This division is slated for a public listing on the Nasdaq First North Premier Growth Market in Stockholm, with trading expected to commence on December 11, 2025. Despite the change, Arc Games will remain as a co-publisher for Fellowship. The game, developed by Stockholm’s Chief Rebel, launched on PC via Early Access on October 16, 2025. The development team, consisting of around 35 members, is diligently working towards a full release in the first half of 2026. Fellowship is currently available at a 20% discount on Steam until December 4.
The Embracer Group’s strategic divestment and retention decisions highlight its focus on optimizing its portfolio while ensuring key franchises like Remnant and Fellowship continue to thrive.
