Embracer Group Splinters, Puts Major IPs Under “Fellowship Entertainment” in Ongoing Restructuring Efforts

It’s no secret that Embracer Group has had a rough time of it lately, with repeated layoffs and studio sell-offs rocking the game studio for over two years. Now, Embracer Group has announced that it will be spinning up Fellowship Entertainment as separately listed public company on the Stockholm NASDAQ. The new game studio will still be run by Embracer Group, but Embracer’s Chair of the Board, Lars Wingefors said in an investor note announcing the move that “the separation is about sharper management focus and clearer accountability,” and that it gives “each business the structure and leadership to realize more of its full potential.” Fellowship will focus on development, publishing, and licensing, and it will supposedly free up resources and “allow Embracer more flexibility to pursue accretive but opportunistic bolt-on M&A,” in order to expand its footholds in niches like mobile, distribution, retro, films, remakes, and remasters, seemingly suggesting that Embracer will continue to acquire more game studios and IPs.

Fellowship Entertainment will house IPs like Darksiders, Dead Island, Kingdom Come Deliverance, Metro, Remnant, The Hobbit, The Lord of the Rings, and Tomb Raider, among others. It will also serve as the parent company for 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games and Warhorse Studios—the latter of which just announced two new games already in the development pipeline. The new company is expected to be listed in 2027, and Embracer Group’s CEO, Phil Rogers, and COO, Lee Guinchard, will serve in their respective positions at Fellowship, alongside CFO Müge Bouillon, while Embracer Group will appoint new leadership to those positions before the new company is spun off. For its part, Embracer will be responsible for Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, PLAION Partners, PLAION Pictures, THQ Nordic (including 35 studios and subsidiaries), Tripwire and Vertigo Games, as well as a number of IPs including Destroy All Humans!, Reanimal, Killing Floor, Biomutant, and Desperados.