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.