The Embracer Group has just announced its plans to split the company into three units, each with its own focus.
Game industry giant Embracer Group just announced immense changes to their business model. The group that bought ownership of known IPs such as Tomb Raider, Lord of the Rings or Dead Island is now taking a big step that will change up the gaming market. Until 2025, the company will be split in three entities where each of them will have their own focus.
Embracer Group Is Splitting Up
On April 22, Embracer Group announced their plans to seperate the company into three market-leading game and entertainment companies, that will each have a different focus.
"Moving 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 and entertainment across the globe." ~ Lars Wingefors (CEO)
This decision was made after reviewing their overall strategy for the Embracer Group. The giant has become so big over the years, that it now needs different strategic approaches. Each entity will operate independently with their own strategies, financial profiles, and ambitions, while they will still collaborate with each other.
- "Middle-earth Enterprises & Friends" is one of the three standalone entities that Embracer Group intends to create through its restructuring. This entity will be the powerhouse of AAA game development and publishing for PC and console platforms and keep ownership for Embracers biggest IPs such as The Lord of the Rings and Tomb Raider, among others.
- "Asmodee Group" will become a leading international publisher and distributor of board games, trading cards, and digital board games. The official listing of "Asmodee Group" is planned to take place in 12 months from now.
- The third group that will be born from the split in 2025 is "Coffee Stain & Friends", which will probably become the most diverse entity of the three. Coffee Stain is said to have a focus on indie, mid-market, as well as the free-to-play and mobile gaming industry.
While Embracer was already working in diverse areas, with the separation of the three, they will now be able to unleash their full potential, each in their own niche... hopefully.