Embracer Group Sells Cryptic Studios and Arc Games in $30 Million Deal

Embracer Group has sold Cryptic Studios, the developer behind *Star Trek Online*, and Arc Games, the publisher of *Remnant: From the Ashes*, in a $30 million transaction to Project Golden Arc. This new entity is led by members of Arc Games' management team and is financed by XD Inc., known for its work on *Torchlight Infinite*. The sale continues Embracer's trend of divesting assets following a series of acquisitions that began in 2021.

Embracer sells off Star Trek Online’s Arc Games, Cryptic StudiosEmbracer Group sells publisher Arc Games and Star Trek Online developer Cryptic Studios, but once again clings on to the publishing rights for Remnant 2Embracer sells two more companies from its acquisition spree era, as Remnant and Neverwinter firms offloaded

The deal includes the transfer of publishing rights for several titles, including *Star Trek Online*, *Neverwinter*, *Torchlight*, and *Hyper Light Breaker*, to Project Golden Arc. However, Embracer will retain the publishing rights for the *Remnant* franchise, which will be managed by THQ Nordic, a subsidiary that already owns the intellectual property and the development studio, Gunfire Games. Additionally, the rights to the multiplayer online game *Fellowship* will be transferred to Coffee Stain, which is set to become a publicly traded company on December 11, 2023.

Embracer sells two more companies from its acquisition spree era, as Remnant and Neverwinter firms offloaded

Phil Rogers, CEO of Embracer Group, stated that this transaction aligns with the company's priorities by enhancing its focus on strategic assets and improving profitability and free cash flow. He expressed gratitude to the teams at Arc and Cryptic for their contributions over the past four years and expressed confidence in their future success under the new ownership.

Embracer sells off Star Trek Online’s Arc Games, Cryptic Studios

Embracer Group's acquisition spree in 2021 aimed to consolidate various gaming studios, but the strategy faced challenges when the company failed to secure a significant partnership worth $2 billion. This led to widespread layoffs, studio closures, and the cancellation of several projects. The divestment of Cryptic Studios and Arc Games marks a continuation of Embracer's efforts to streamline its operations and focus on core franchises.

Embracer Group sells publisher Arc Games and Star Trek Online developer Cryptic Studios, but once again clings on to the publishing rights for Remnant 2

The ongoing sell-off has drawn scrutiny from industry observers who question the sustainability of Embracer's rapid expansion and subsequent contraction. Critics highlight the impact of these decisions on employees and the gaming community, particularly following the layoffs and studio closures that have occurred since the failed partnership.

Embracer Group sells publisher Arc Games and Star Trek Online developer Cryptic Studios, but once again clings on to the publishing rights for Remnant 2

• “Phil Rogers, CEO of Embracer, said: “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.” — Phil Rogers, CEO of Embracer Group

Embracer sells two more companies from its acquisition spree era, as Remnant and Neverwinter firms offloaded

• “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.” — Phil Rogers, CEO of Embracer Group

Embracer sells two more companies from its acquisition spree era, as Remnant and Neverwinter firms offloaded

As Embracer Group continues to reshape its portfolio, the upcoming spin-off of Coffee Stain and the management of the *Fellowship* game will be closely watched by industry stakeholders. The future of the *Remnant* franchise under THQ Nordic also remains a focal point for fans and investors alike.

Embracer sells off Star Trek Online’s Arc Games, Cryptic Studios