Embracer Group has completed the sale of two North American studios, Arc Games and Cryptic Studios, as part of its ongoing effort to streamline operations and focus on core intellectual properties. Both studios, long known for their expertise in online multiplayer games, were acquired by Project Golden Arc Inc., a newly formed company led by several members of Arc Games’ management team. The deal, valued at $30 million, marks the end of a four-year period under Embracer ownership.
Arc Games and Cryptic Studios are based in Northern California and have contributed to Embracer’s portfolio since being brought into the group during a phase of rapid expansion under former CEO Lars Wingefors. The studios have been involved in developing persistent online game environments, and their divestment reflects a broader restructuring strategy after Embracer experienced setbacks following a failed $2 billion partnership in 2023.
Project Golden Arc Inc. was formed to take over the studios’ operations and continue the development of their ongoing projects. The company is headed by key members of the existing Arc Games leadership team, aiming to maintain continuity while pursuing new opportunities in online gaming. Prior to this transaction, Arc Games had operated under the name Gearbox Publishing San Francisco, a label that changed after Embracer sold Gearbox Entertainment to Take-Two Interactive last year.
Phil Rogers, CEO of Embracer Group, explained that the divestment supports the company’s broader strategy to focus on high-priority assets while improving profitability and cash flow. He also highlighted that the move enables the online multiplayer title Fellowship, developed by an external team in Stockholm, to join Coffee Stain Group, offering the project a suitable environment for further development. Rogers thanked the teams at Arc Games and Cryptic Studios for their contributions over the past four years and expressed confidence in their future growth under the new ownership.
Despite selling the two studios, Embracer will continue to hold publishing rights for the Remnant series, an established franchise within its portfolio. This decision reflects the company’s intent to retain strategic intellectual property while divesting non-core assets. The sale represents a step in Embracer’s ongoing effort to stabilize operations, optimize its studio and publishing network, and realign resources toward key projects and high-performing IP.
With the transition to Project Golden Arc completed, Arc Games and Cryptic Studios are set to continue their work on online gaming projects under new leadership. Meanwhile, Embracer remains focused on consolidating its operations, strengthening its financial position, and refining its portfolio of studios and publishing rights as it navigates the evolving landscape of the global gaming industry.
This restructuring continues Embracer’s pattern of adjusting its holdings to balance growth with operational sustainability, reflecting lessons learned from its rapid expansion phase and recent strategic challenges.
