CEO of Embracer leaves position after cuts and restructurings

After a period of strong expansion followed by abrupt retraction, Lars Wingefors, founder of Embracer Group, will step down as CEO in August 2025. The decision comes after years marked by ambitious acquisitions, severe cuts, and a failed attempt at market consolidation. The current vice-CEO, Phil Rogers, will be the direct successor.

Between 2021 and 2022, Embracer stood out in the sector with high-profile purchases such as Gearbox Entertainment (of Borderlands) and Middle-earth Enterprises, holder of the rights to The Lord of the Rings. However, the company faced a strategic collapse when a $2 billion deal with Savvy Games Group failed, undermining the plans to sustain the expansions.

The consequence was a series of controversial decisions: the closure of Volition Games studio (of Saints Row), the sale of Gearbox, the separation of Saber Interactive (of Space Marine 2), as well as the dismissal of 1,387 employees and the cancellation of 29 unannounced projects. Wingefors himself called the criticism received "painful" in an official statement.

In April 2024, the group announced a plan to split into three independent entities:

• Asmodee Group (board games),
• Coffee Stain & Friends (indie games),
• Middle-earth Enterprises & Friends (licensed properties and AAA).
   

The division related to The Lord of the Rings was renamed as Fellowship Entertainment, while the Coffee Stain Group division gained special attention in the new strategic plan. The idea, according to the company, is to "unleash the potential of each team with dedicated leadership and strategic focus."

Despite stepping down from the executive leadership, Wingefors will remain within the company structure as chairman of the board. The current chairman, Kicki Wallje-Lund, will assume the role of vice chairman. In addition, Wingefors will join the board of Coffee Stain Group, where he will continue to influence decisions related to acquisitions and capital allocation.

"With the beginning of this new phase, I am grateful for the years and lessons learned as CEO of Embracer. Although the road has not always been straight, I am incredibly proud of the achievements made possible by our talented teams, who have created some amazing experiences for players," said Wingefors in a statement to GamesIndustry.biz.

"This new phase allows me to focus on strategic initiatives, mergers and acquisitions, and capital allocation, ensuring the continued growth and success of Embracer. Having worked very closely with Phil in recent years, I have great confidence in his abilities."

Even in the face of retraction, Embracer still controls or holds stakes in more than 450 franchises. Its portfolio includes companies like THQ Nordic, Plaion, Amplifier Game Invest, DECA Games, Dark Horse, Freemode, and Crystal Dynamics - Eidos. Currently, the company has 73 internal studios and employs over 7,000 employees.

The future of the company will now depend on the ability of its three new divisions to remain relevant and generate profit in an increasingly competitive consolidation scenario.