Embracer Group sees net sales across PC/console and mobile games fall in FY2024/25 A "solid" final quarter is attributed to Kingdom Come Deliverance 2, which reached 3m sales News by Vikki Blake Contributor Published on May 22, 2025 Embracer Group has published its financial results for the fourth quarter ending March 2025, reporting declines across its PC/console and mobile segments on both the quarter and the fiscal year. Full-year accounts also reveal Embracer has cut the number of its total game development projects from 141 to 108, and its headcount from 9692 to 7180. 5378 of those staff are game developers. Here's what you need to know: The numbers Q4 (3 months ended March 31, 2025) Net sales: SEK 5.4 billion ($560.5 million, down 6% year-on-year) PC/Console games: SEK 3 billion ($311.4 million, down 2% year-on-year) Mobile: SEK 943 million ($97.9 million, down 31% year-on-year) Entertainment & services: SEK 1.3 billion ($134.9 million, up 9% year-on-year) Full-year (12 months ended March 31, 2025) Net sales: SEK 22.3 billion ($2.32 billion, down 18% year-on-year) PC/Console games: SEK 1.5 billion ($155.7 million, down 27% year-on-year) Mobile: SEK 5.3 billion ($550 million, down 9% year-on-year) Entertainment & services: SEK 6.5 billion ($674.6 million, down 7% year-on-year) Embracer attributes its "solid" quarter to the performance of Kingdom Come Deliverance 2, which reached three million copies sold and "maintained a highly positive player and critic reception." It believes the DLC and free updates planned across the next 12 months will keep players "excited and deeply engaged." The firm makes a distinction between actual and organic growth, and states that though its mobile games sales fell by 31% between January and March 2025, its organic growth was 30%. It also states its PC/console games sales displayed an "organic growth" of 22%. Embracer also noted it had made "significant progress in the process of transforming the Group," with the divestment of Easybrain and Asmodee successfully completed, and Coffee Stain Group expected to be spun off by the end of the calendar year. "In a solid ending to the year, net sales grew by 19% organically to SEK 5.4 billion, while Adjusted EBIT grew by 44% year-on-year pro forma to SEK 1.1 billion, with a free cash flow of SEK 1.0 billion in Q4," said CEO Lars Wingefors. "Kingdom Come: Deliverance II continued to perform in Q4, and reached 3 million sold copies after quarter-end. Organic growth within Mobile accelerated to 30% year-on-year. By the end of 2025, we now plan to spin off Coffee Stain Group, a group of leading community- driven game developers and publishers. We have a strong financial position, and we remain focused on enhancing efficiency and long-term resilience ahead of the spin-off. Looking ahead Right now, the group expects to release 76 games across FY 2025/26, "with a mix of new IPs, sequels, and remasters," including Metal Eden, Gothic 1 Remake, Reanimal, Fellowship, Wreckreation, the next SpongeBob SquarePants game, Norse: Oath of Blood, and Deep Rock Galactic: Rogue Core. It also makes explcit mention of two AAA games; Killing Floor 3 - which is now scheduled for Q2 - and Marvel 1943: Rise of the Hydra, which is scheduled to release sometime in the 25/26 fiscal year. Embracer "expect[s] Marvel 1943: Rise of Hydra to drive notable revenues but to have lower margins due to shared economics with several other partners." A previously mentioned third AAA game has been delayed to 2026/27 as management takes the "prudent view" that "the game will likely need a few more quarters to polish." An additional nine AAA games are planned across 2027/28 and 2028/29 financial years. Earlier today, we reported THQ Nordic's studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news, the developer said it had "never shut down" despite closing as part of THQ Nordic's parent company Embracer's restructuring efforts.

Embracer Group announced that it would split into three separate entities in April 2024.

Embracer has announced that it is spinning off Coffee Stain Group – formerly known as Coffee Stain & Friends – into a standalone group of developers and publishers. As a result of this, what remains of Embracer Group, a division formerly known as Middle-Earth & Friends, will be renamed to Fellowship Entertainment. As part of this move, shares in Coffee Stain Group will be distributed to shareholders of Embracer and will go on to be listed on the Nasdaq First North Premier Growth Market in Stockholm. Fellowship’s stocks will continue to be listed on Nasdaq Stockholm. 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.

Force of Hobbit Embracer Group says it'll put out 76 different games in the coming year, as it ditches friends for a fellowship and spins off Goat Sim publisher Coffee Stain The lovely, hunky-dory friendship group is no more, Embracer's embracing the whole Middle Earth thing instead. Image credit: Embracer Group/Skydance News by Mark Warren Senior Staff Writer Published on May 22, 2025 Damn, the nice little friendship thing Embracer Group had decided to morph into after earning the ire of lots of folks by going hard on the layoffs, closures and sales is no more. The company's decided to ditch the "and friends" tag it had given to different bits of its business, and form a fellowship, as it does yet more corporate shuffling around. It does also plan to actually release some more games. To see this content please enable targeting cookies. As announced by Embracer, the bit of previously dubbed Middle-Earth and Friends will now be known as Fellowship Entertainment. As you might have guessed, that's the part that looks after The Lord of the Rings, as well as housing the studios behind likes of Kingdom Come Deliverance, Tomb Raider, the Metro series, and Dead Island. With Asmodee, the second of the three bits Embracer divided itself into last year, having spun off from the company as of February this year, it's the turn of the third bit formerly known as Coffee Stain & Friends to do the same. Now named Coffee Stain Group, the subsidiary that includes the dev teams behind the likes of Deep Rock Galactic, Valheim and Goat Simulator is being released into the economic wild as a separately stock market-listed company. "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," Coffee Stain Group CEO Anton Westbergh said, "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." Right, that's enough on the corporate shuffling of people's livelihoods. In the financial results it's published alongside this spin-off announcement, Embracer says that it's got "76 different games" it plans to release in the coming financial year. There'll be "a mix of new IPs, sequels, and remasters", including Killing Floor 3 and the recently delayed Marvel 1943: Rise of Hydra, with Embracer expecting the latter to "drive notable revenues but to have lower margins due to shared economics with several other partners". Another as of yet unannounced AAA game that Embracer things will have "financial dynamics more similar to Kingdom Come: Deliverance 2" is also in the works, but the company reckons it'll have to be pushed back to the 2026/27 financial year to allow for more "polish" The rest of the lineup for the upcoming is being filled by the likes of Deep Rock Galactic: Rogue Core, Metal Eden, and "the next SpongeBob SquarePants game". Spongebob Squarepants tries to get to the Bikini Bottom of where Embracer's friends have gone, maybe?

Embracer Group, the Swedish gaming behemoth that employs thousands of people around the world, has announced that it plans to launch 76 more games in the semi-near future. The company also confirmed that it's getting a new name--going forward, Embracer Group will be called Fellowship Entertainment.As part of the company's latest earnings briefing, it said these 76 games will be a mix of new IP, sequels, and remasters. Some of them include Metal Eden, the Gothic remake, Reanimal, Wreckreation, the next SpongeBob game, Norse: Oath of Blood, Killing Floor 3, and the recently delayed Marvel 1943: Ryse of Hydra.For Ryse of Hydra specifically, Embracer said this game is likely to bring in a lot of revenue but won't be as profitable due to "shared economics with several other partners" as a high-profile licensed game.Continue Reading at GameSpot

Image: Daedalic EntertainmentEmbracer Group has seemingly been scrambling to right the ship after a turbulent few years, and its latest announcement reveals yet another significant move for the company. As reported by Game Developer, Embracer posted an investor statement to confirm that it is renaming its core gaming division from the working-title 'Middle Earth & Friends' to 'Fellowship Entertainment'. In addition, it's also looking to spin off the Coffee Stain Group into a "standalone group of community-driven game developers and publishers". The company notes that Fellowship Entertainment will have a total of approximately "6,000 employees across more than 30 countries". Here's a look at what it will be working on along with the teams it will encompass: "The group will be steward of the commercial rights to J.R.R. Tolkien’s work The Hobbit and The Lord of the Rings, as well as intellectual properties Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant and Tomb Raider, amongst more than 300 other gaming IPs. "Fellowship Entertainment will consist of companies such as 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 amongst more than 40 other companies." Meanwhile, Coffee Stain Group will consist of "more than 250 passionate game developers and publishers". We thought it might be fun to come up with our own alternatives to Fellowship Entertainment, so if you have any ideas yourself, be sure to let us know with a comment: Second Breakfast Games Tom Bombadeveloper One Does Not Simply Games You Shall Not Game Pass (sorry, Phil) Po-Tay-Toes Entertainment Sackville-Baggames It Comes in Pints Entertainment Sullied name Group discontinues all operations in Russia What do you make of this news from Embracer Group? Is this the turning point for the publisher? Let us know your thoughts. [source embracer.com, via gamedeveloper.com] Share:0 1 Nintendo Life’s resident horror fanatic, when he’s not knee-deep in Resident Evil and Silent Hill lore, Ollie likes to dive into a good horror book while nursing a lovely cup of tea. He also enjoys long walks and listens to everything from TOOL to Chuck Berry. Hold on there, you need to login to post a comment... Related Articles Xenoblade Dev Monolith Soft Is On The Hunt For New 2D And 3D Designers Recruitment sessions start next month Switch 2's Price May Pose "Challenges" For First-Year Sales, Says Furukawa Hence the lower-than-expected sales forecast Palworld Dev Announces "Disappointing" Game Changes Resulting From Nintendo's Lawsuit "We have had to make certain compromises" Nintendo Says Switch 2 Price Changes May Still Occur Depending On Tariffs Console price remains unchanged for now EA And Respawn Hit By Hundreds Of Layoffs As New Project Cancelled Between 300 to 400 people have lost their job

Chris Kerr, Senior Editor, NewsMay 22, 20252 Min ReadImage via Embracer GroupEmbracer Group has detailed how the next stage in its plan to split into three standalone, publicly-listed companies will unfold.Last year, the Swedish conglomerate ended a period of studio closures, divestments, and layoffs by announcing it would partition its business into three units: Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friend.After carving out Asmodee and saddling it with debt, the company has confirmed it intends to spin off Coffee Stain Group and rename its remaining business Fellowship Entertainment."Embracer today announces its intention to spin-off Coffee Stain Group (previous working name Coffee Stain & Friends) into a standalone group of community-driven game developers and publishers by the end of calendar year 2025," reads an investor update."The shares in Coffee Stain Group will be distributed to the shareholders of Embracer, and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm. At the same time, Embracer Group AB are planned to be renamed Fellowship Entertainment (previous working name Middle Earth & Friends)."Embracer pledges to create "unforgettable experiences" after cutting ties with thousands of workersCoffee Stain Group will consist of over 250 game developers and publishers such as Coffee Stain, Ghost Ship, and Tuxedo Labs. It will also house certain studios from Amplifier Game Invest.Related:Coffee Stain CEO and co-founder Anton Westbergh will lead the group and become the steward of popular franchises including Deep Rock Galactic, Goat Simulator, Satisfactory, Valheim, Teardown, and Welcome to Bloxburg.Embracer's remaining business will be renamed Fellowship Entertainment and intends to unite top creators and intellectual properties to "build unforgettable experiences" for players.Fellowship will comprise 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, Warhorse Studios, and more than 40 other companies.In total, the rebranded business unit will employ roughly 6,000 people in over 30 countries. The group will control the commercial rights to The Hobbit and The Lord of the Rings and game franchises like Kingdom Come Deliverance, Dead Island, Tomb Raider, and over 300 other IPs.Embracer Group CEO Lars Wingefors will continue to oversee all three business entities by establishing a privately held holding company called Embracer AB that will "act as an active and supportive long-term shareholder" of Asmodee Group, Coffee Stain Group, Fellowship Entertainment, and "potentially other companies."Related:Read more about:Embracer GroupAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Campfire Cabal returns after being shuttered by Embracer Studio says it was "never shut down" and has been working on the next instalment of the Expedition series Image credit: Campfire Cabal News by Sophie McEvoy Staff Writer Published on May 22, 2025 THQ Nordic's studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news in a blog post, the developer said it had "never shut down" despite closing as part of THQ Nordic's parent company Embracer's restructuring efforts. "We are finally ready to reveal that Campfire Cabal was never shut down," it said. "Though we did have to say goodbye to many of our colleagues, the studio survived and a compact team continued the project we had started in 2022." This project is the next game in the Expedition series, and by the end of March 2025 it had been "given the green light to scale back up and transition into full production." Campfire Cabal also confirmed that it patched Expeditions: Rome in 2024 despite being "radio silent" since the studio's initial closure. "If you follow the insider news, you are aware that it's been a rough couple of years in the game industry," the developer continued. "Investment dried up, studios shut down, countless developers lost their jobs, and games were cancelled left and right. "We are extremely grateful that there were people within the group who fought to keep us alive through the turmoil, and that we can now emerge on the other side with renewed vigour." THQ Nordic launched Campfire Cabal in September 2022, comprised of veterans from the Expeditions franchise. By August 2023, Embracer informed THQ Nordic needed to close Campfire Cabal due to restructuring. "We want to make it clear that our management and the rest of the team have not given up on Campfire Cabal yet, and neither have our friends at THQ Nordic," the developer wrote on LinkedIn at the time. "We are still pursuing our options for finding a good resolution to this situation, and THQ Nordic has been very supportive throughout this difficult time." It concluded: "This does not mean that it's over for us as a studio. We're extremely proud of how our team has come together to keep the campfire burning, and of the commitment and camaraderie everyone has demonstrated since the news broke."

Today, Embracer Group announced a rebranding to Fellowship Entertainment. This is a clear nod to The Lord of the Rings IP, whose rights Embracer purchased around two years ago for a relatively low sum ($395 million). Following the acquisition, COO Matthew Karch claimed that the group's priority should be turning The Lord of the Rings into one of gaming's biggest franchises. Karch is no longer with Embracer (which split with Saber Interactive a while ago), but the sentiment appears to have remained the same, given the brand name's choice. Of course, Tolkien's beloved fantasy universe is just one of many big franchises owned by Fellowship Entertainment, such as Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, and Tomb Raider. The new company will house over 6K employees spread across 50 companies or so. The other big news announced today is that Coffee Stain Group (Goat Simulator, Satisfactory, Deep Rock Galactic) is being spun off into a separately listed company. Lars Wingefors, co-founder and Group CEO of Embracer, said in a statement: Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success. 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. Anton Westbergh, co-founder and Group CEO of Coffee Stain, added: 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. 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. The Embracer name will live on, albeit stained after countless layoffs and closures, only as the privately held holding company of Fellowship Entertainment, Coffee Stain Group, and Asmodee Group (which had been spun off earlier this year). Lars Wingefors, as the main shareholder, will remain in control. The company also provided an overview of its announced release schedule. In fiscal year 2025/2026, the following titles will be launched: Metal Eden Gothic 1 Remake REANIMAL Fellowship Wreckreation The next SpongeBob SquarePants game NORSE: Oath of Blood Deep Rock Galactic: Rogue Core Killing Floor 3 Marvel 1943: Rise of Hydra Embracer said a triple-A game previously scheduled for 2025/2026 is likely to be moved to 2026/2027. The company expects similar sales to Kingdom Come: Deliverance II for this title. They may be referring to the next Metro game, though there's no way to know for sure. Deal of the Day

Embracer Group to spin off Coffee Stain Group; remaining business to be renamed Fellowship Entertainment Embracer Group will spin off Coffee Stain Group into a standalone group by the end of 2025, the companies announced. At the same time, Embracer Group’s remaining business, previously known un… www.gematsu.com Embracer Group will spin off Coffee Stain Group into a standalone group by the end of 2025, the companies announced. At the same time, Embracer Group's remaining business, previously known under the working name "Middle-earth Enterprises & Friends," will be renamed Fellowship Entertainment, and a new holding company, Embracer AB, will be established as a long-term shareholder of Asmodee Group, Coffee Stain Group, and Fellowship Entertainment. Coffee Stain Group will consist of more than 250 game developers and publishers across the following companies: Coffee Stain Studios, Ghost Ship Games, Tuxedo Labs, and certain studios from Amplifier Game Invest, all based in Scandinavia. Its intellectual properties include Deep Rock Galactic, Goat Simulator, Satisfactory, Teardown, Valheim, and Welcome to Bloxburg. Fellowship Entertainment will consist of companies such as 4A Games, Aspyr Media, CrazyLabs, Crystal Dynamics, Dambuster Studios, Dark Horse, Deca Games, Eidos Montreal, Flying Wild Hog, Gunfire Games, Limited Run Games, Middle-earth Enterprises, Milestone, PLAION, Tarsier Studios, THQ Nordic, Tripwire Interactive, Vertigo Games, and Warhorse Studios, among more than 40 other companies. The group will be steward of the commercial rights to J.R.R. Tolkien's work The Hobbit and The Lord of the Rings, as well as intellectual properties Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, and Tomb Raider, amongst more than 300 other video game properties. Click to expand... Click to shrink...