Embracer Divests Arc Games and Cryptic Studios in $30 Million Sale

Embracer Group has continued to divest parts of its vast portfolio, announcing the sale of two more studios: Arc Games and Cryptic Studios. The studios were acquired by Project Golden Arc, a new entity led by the Arc Games management team and funded by the Hong Kong-based company XD Inc. The transaction generated proceeds of $30 million (SEK 287 million) for Embracer.

Arc Games previously served as the publisher for live-service titles such as Star Trek Online, Neverwinter, and the Remnant series. Cryptic Studios was the development team behind Neverwinter and Star Trek Online.

Deal Structure and Future Focus

This divestment aligns with Embracer’s ongoing strategy to streamline its assets following the collapse of a major partnership deal.

Key Outcomes of the Sale:

• Studios Sold: Arc Games (Publisher) and Cryptic Studios (Developer).

• Proceeds: $30 million.

• Embracer Retains Rights: Embracer keeps the publishing rights to the popular Remnant franchise (developed by Gunfire Games) and the MMO Fellowship.

• Fellowship Future: The Fellowship MMO will be assigned to Coffee Stain, which is slated to be spun out of the Embracer Group in December.

Phil Rogers, CEO of Embracer, stated that the transaction supports the company's core priorities by "strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow."

The studios were originally part of Perfect World, which Embracer acquired in 2021 and briefly rebranded as Gearbox Publishing San Francisco before selling off Gearbox entirely in 2024. This divestment marks the latest step in unwinding the rapid expansion pursued under former CEO Lars Wingefors.