Embracer sells Arc Games and Cryptic Studios for US$ 30 million

A Embracer continued its divestment process, selling Arc Games and Cryptic Studios for US$ 30 million (SEK 287 million). The two studios were acquired by Project Golden Arc, a new entity led by members of the management team of Arc Games and financed by the Hong Kong company, XD Inc.

The Arc Games acts as a publisher of live service games including Star Trek Online, Neverwinter, and the franchises Remnant, Torchlight and Hyper Light Breaker. Cryptic Studios is the developer behind Neverwinter and Star Trek Online. The studios had been purchased by Embracer in 2021 from Perfect World and rebranded as Gearbox Publishing San Francisco, before Embracer sold Gearbox in 2024.

The sale is the latest in the long process of dismantling of Embracer after its rapid expansion abruptly ceased when a planned partnership of US$ 2 billion (allegedly with Savvy Games Group from Saudi Arabia) did not materialize. The company reported a net loss of SEK -23 million in the most recent quarter, with a total income of SEK -203 million in the period.

Phil Rogers, CEO of Embracer, defended the transaction: "This transaction supports our key priorities, strengthening our focus on strategic assets and core IPs at Embracer, while enhancing profitability and free cash flow."

The Embracer retained the publishing rights of the Remnant franchise, developed by Gunfire Games, and the rights of the MMO Fellowship, developed by Chief Rebel and currently in Early Access. Fellowship will be assigned to Coffee Stain, which is scheduled to be divested from Embracer in December.

Rogers thanked the sold studios: "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 grow in the coming years."