Embracer Group Sells Cryptic Studios and Arc Games Amidst Ongoing Asset Downsizing

In a shopping spree fueled by the gaming industry’s boom during the COVID-19 pandemic, **Embracer Group** acquired numerous studios. However, due to its declining fortunes, the holding company is now forced to offload some of its assets, including **Cryptic Studios** and **Arc Games**.

**Embracer** purchased both companies in 2021, and they will now come under the umbrella of **Project Golden Arc**, established by the leaders of **Arc Games**. The deal amounts to $30 million, with **XD Inc** serving as the funding source.

It’s worth noting that **Cryptic Studios** are industry veterans with extensive experience in creating MMO titles. This team is responsible for games like **City of Heroes**, **Neverwinter**, and **Star Trek Online**. On the other hand, **Arc Games** may sound familiar to many under its former names: **Perfect World Entertainment** and **Gearbox Publishing San Francisco**. The company acted as the publisher for the aforementioned **Star Trek Online** and **Neverwinter**, as well as the two installments of **Remnant**, **Hyper Light Breaker**, and the recently released **Fellowship**.

Under the agreement, the publishing rights to the **Remnant** franchise will transfer from **Arc Games** to **THQ Nordic**, which is part of the **Embracer** group. This studio already holds the rights to the **Remnant** brand and owns the development studio **Gunfire Games**. Meanwhile, the rights to the multiplayer online game **Fellowship** will shift to **Coffee Stain**, which is preparing to separate from **Embracer** and go public by the end of 2025.

In June 2023, **Embracer** initiated a major restructuring process, leading to thousands of employee layoffs and the closure of several studios. The company also sold off parts of its internal teams, including **Gearbox** and **Saber Interactive**.