The Embracer Group, known far and wide in the gaming world, has been in the spotlight due to significant studio layoffs and divisions from 2023 into the early part of 2024. However, breaking away from this trend, Embracer Group has made a noteworthy announcement.
In an official press release, Embracer Group has revealed its plan to divide into three distinct entities within the gaming and entertainment sector. These entities are named Asmodee Group, “Coffee Stain & Friends”, and “Middle-earth Enterprises & Friends.” Each of these groups will encompass a range of studios previously under the Embracer Group umbrella.
The Asmodee Group is set to primarily concentrate on tabletop games such as Ticket to Ride, 7 Wonders, Azul, CATAN, and more. Meanwhile, Coffee Stain & Friends will direct its efforts towards smaller budget games and Free-to-Play titles, encompassing studios like Coffee Stain, Ghost Ship, THQ Nordic, Tuxedo Labs, and others.
In contrast, Middle-earth Enterprises & Friends will oversee the larger-budget studios, including Crystal Dynamics, Dambuster Studios, 4A Games, Eidos-Montreal, The Lord of the Rings franchise, PLAOIN, Dark Horse, and others.
The naming choices for the new Embracer Group subsidiaries do seem a bit unconventional. It’s interesting to see Coffee Stain taking a prominent role in AA-publishing efforts. However, using “Middle Earth” to represent studios with successful titles feels odd.
The Embracer Group split has indeed caused some confusion, especially since the new subsidiaries incorporate names of well-known studios and IPs in the gaming community. Gamers are now unsure about which company falls under which division, especially with a company name like “Coffee Stain & Friends,” known for developing hits like Goat Simulator and Satisfactory and releasing games like Deep Rock Galactic and Valheim.
For now, things appear relatively calm at Embracer, but how long this lasts remains to be seen. It’s a relief not to report another studio layoff, at least for the time being. What are your thoughts on this change? Share your opinions in the comments below.
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