These IPs include Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, and TimeSplitters, among others. This plan isn’t just limited to working with other game companies either. Wingefors has noted that Dark Horse will be operating as part of the new IP & Licensing business unit, thanks to its track record of having worked on TV and movie adaptations.

“In addition to expanding our largest transmedia IPs, The Lord of the Rings/Middle-earth and Tomb Raider, we see great potential to invest our own capital in and form new partnerships for our largest other AAA IPs, such as Kingdom Come: Deliverance, Dead Island, Darksiders, Remnant, and the licensed Metro series,” wrote Wingefors. “Apart from the largest IPs, we will more actively be exploring external partnerships around our roster of other well-known IPs such as Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, TimeSplitters, amongst many others. Dark Horse will operationally become part of the new IP & Licensing business unit with its long track record of co-producing film and TV shows with partners in Hollywood.”

Wingefors also noted that some of the IPs that will fall under Fellowship Entertainment have been quite undervalued by the industry. As such, a major reason behind the spin-off was to give the company the structure it requires to realize the full potential of those IPs. “I’m convinced that Fellowship Entertainment could reach industry-leading profitability and show healthy long-term organic growth above the industry average,” he wrote.

Whether this means we will be seeing a brand new entry in the long-dormant Deus Ex or Red Faction franchises, or even a new open-world Saints Row game, remains to be seen. However, the fact that Fellowship Entertainment is being given ownership over these IPs might be good news for fans of the classic games.

In the official announcement of forming the spin-off, Wingefors had said that the separation of the game development arm from the management arm would provide “sharper management focus and clearer accountability” for both companies to achieve what they need to.

“I am truly excited about Fellowship Entertainment’s prospects to organically grow substantially over the coming years. I am equally optimistic about the potential of the deep portfolio and selective M&A opportunities for a more focused Embracer. As Chair and major shareholder, I am strongly committed to support the preparations to drive value in two listed companies over the long-term,” he said.

The split between Embracer Group and Fellowship Entertainment is slated to take quite some time, and the company believes that the move will be completed before the end of calendar year 2027.

Fellowship Entertainment’s focus will be around game development, publishing, and licensing, and it will keep the rights to the Tomb Raider and The Lord of the Rings IPs, alongside many others. As of March 31st, 2026, the company has a total headcount of 2,169. Embracer, on the other hand, will focus on streamlining its structure with an emphasis on tighter cost control and disciplined capital allocations.

“This separation is about sharper management focus and clearer accountability, giving each business the structure and leadership to realize more of its full potential,” said chair of Embracer Group’s board, Lars Wingefors, in a statement. “I am truly excited about Fellowship Entertainment’s prospects to organically grow substantially over the coming years. I am equally optimistic about the potential of the deep portfolio and selective M&A opportunities for a more focused Embracer. As Chair and major shareholder, I am strongly committed to support the preparations to drive value in two listed companies over the long-term.”

Embracer Group CEO Phil Rogers reiterated the goal to streamline the company’s management capabilities while also making sure that the two distinct businesses are successful with a structure supporting transparency and execution.

“Our direction is clear: to build a more disciplined group with two distinct businesses, each with a mandate and a structure that supports transparency and execution,” he said. “I am confident that this is the right path forward to deliver long-term value for our fans, our businesses and IPs, our people, and our shareholders.”

As a result of this move, 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 will all fall under the Fellowship Entertainment umbrella. The company will also create a new publishing group that consolidates the talents of PLAION and its other parts. The IPs it owns include Darksiders, Dead Island, Kingdom Come: Deliverance, Metro, Remnant, The Hobbit, The Lord of the Rings, and Tomb Raider, among others.

Embracer Group, on the other hand, will have 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 under it.

As for the leadership structure, Embracer Group will largely hang on to its current executive suite, with Rogers and COO Lee Guinchard remaining in their roles. Once Fellowship Entertainment is spun off, the two will take on the CEO and COO in the new company, alongside Müge Bouillon coming on as CFO. Embracer Group itself will be getting a new CEO and CFO, and the recruitment process has been kicked off.

The changes aren’t going to be immediate. Rather, Phil Roger’s tenure as CEO of Embracer will officially start on August 1. Wingefors, on the other hand, will officially stop being part of the executive management team at the company on the same day, and will become the chair of the board on September 18.

“With the start of this new phase, I am thankful for the years and lessons learned as CEO of Embracer,” said Wingefors in a statement, according to a press release announcing the changes. “While the road has not always been straight, I am incredibly proud of the achievements made possible by our talented teams, which have created some incredible experiences for gamers. This new phase allows me to focus on strategic initiatives, M&A, and capital allocation, ensuring Embracer’s continued growth and success.”

“I am more convinced than ever that the best is still ahead of us. Having worked very closely with Phil over the past years, I have high confidence in his abilities. I look forward to a continued close collaboration to further strengthen the business and drive value in the coming years.”

Along with these changes, Embracer has also revealed leadership changes for Coffee Stain Group. Anton Westbergh – CEO of Coffee Stain Group, along with Wingefors, will be appointed as directors of the company. Current board member of Embracer Jacob Jonmyren will also be appointed as the chair of the board for Coffee Stain Group. The spun-off company is also getting Erik Sunnerdahl – currently group finance director at Embracer – as its new CFO.

Embracer had announced back in May that it was spinning off Coffee Stain Group into being its own entity. As part of the move, the remainder of Embracer – formerly known as Middle-Earth & Friends – will instead be renamed to Fellowship Entertainment.

As a result of this move, Coffee Stain Group took with it 250 employees between development teams and publishing teams. The company also officially owns development studios like Coffee Stain, Tuxedo Labs, and Ghost Ship. Some of the IP that was spun off into being a part of Coffee Stain Group includes Deep Rock Galactic, Satisfactory, Goat Simulator, Valheim, and Teardown, among others.

“We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years,” wrote Westbergh when the corporate move was first announced. “Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary—but in a good way.”

“Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success,” said Wingefors. “I am confident in Anton’s strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”

As a result of this move, Coffee Stain Group will take with it 250 employees among its development and publishing divisions. The overall group will include Coffee Stain, Tuxedo Labs, and Ghost Ship, along with some Scandinavia-based studios from Amplifier Game Investment. Some of the IPs under Coffee Stain Group will be Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg.

Fellowship Entertainment, on the other hand, will focus on transforming its business into a group that can handle game development and publishing, as well as the development of new IPs that can be spin-off into transmedia properties, including comics, merchandise, and film. Companies under Fellowship Entertainment include 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos-Montréal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, and Warhorse Studios. These are among the 40 different companies under Fellowship Entertianment.

“We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years,” wrote Coffee Stain founder and group CEO Anton Westbergh. “Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary—but in a good way.”

“The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. We can now focus even more on what we do best—supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain.”

Embracer co-founder and group CEO Lars Wingefors also had a statement where he praised the talent, IPs and communities under Coffee Stain Group. The decision to split the company off was seemingly made because of Westbergh’s strategies and leadership for the long-term health and success of the company.

“Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success,” said Wingefors. “I am confident in Anton’s strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents.”

While the move looks largely like it might end up being a good thing for all parties involved, only time will tell how they might end up affecting the developers at all of the studios, as well as the games that they’re making, that will be affected.