Embracer, the gaming company that recently underwent significant restructuring, has announced its division into three separate entities: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends.
Previously known for acquiring gaming IPs and studios, such as Gearbox Entertainment, Crystal Dynamics, and Middle-earth Enterprises, Embracer Group operated as a conglomerate. Following a failed deal with Savvy Group, Embracer underwent restructuring, leading to layoffs, studio closures, and the sale of companies like Saber Interactive and Gearbox. The decision to split into three standalone entities was made as the current group structure was deemed suboptimal for future value creation.
By the end of 2025, Embracer Group will have divided into three companies listed on Sweden’s stock exchange, impacting investors and stakeholders. The new entities will be responsible for different aspects of the company’s assets and operations.
Asmodee will oversee Embracer Group’s tabletop gaming developers and franchises, including popular titles like 7 Wonders, Azul, Catan, and Star Wars: Unlimited. Coffee Stain & Friends and Middle-earth Enterprises & Friends will focus on video game development and publishing.
Coffee Stain & Friends will concentrate on various game types for PC, console, and mobile, including free-to-play, LiveOps, and indie/AA games. Studios and developers under this entity include Coffee Stain, THQ Nordic, and Ghost Ship, among others.
Meanwhile, Middle-earth Enterprises & Friends will specialize in AAA game development and publishing for PC and console, with a focus on franchises like The Lord of the Rings, Metro, and Tomb Raider, and studios like Crystal Dynamics and Warhorse Studios.
In summary, Asmodee will handle tabletop games, Coffee Stain & Friends will focus on indie and AA games, and Middle-earth Enterprises & Friends will manage AAA game development.
