Embracer to Split Fellowship Entertainment Off as a Standalone Company

Embracer saw a 24% drop in sales in Q4.

Embracer Group is making changes. The company, which just released its Q4 results, has seen a 24% decline in sales, as well as a $765.2 million non-cash impairment. With that in mind, the company has opted to spin off a good chunk of its IPs under a new public venture. Fellowship Entertainment will house many of the premium IPs under Embracer's purview, including Lord of the Rings, Tomb Raider, Kingdom Come: Deliverance, Dead Island, Darksiders, and Remnant.

Image via GamesIndustry.biz

Embracer itself will maintain the rest of its developers and IPs, with a goal towards "a more efficient structure, tighter cost control, and disciplined capital allocation." CFO Müge Bouillon has been appointed deputy CEO Fellowship to keep things in order as the company solidifies into its own entity. Annual major releases from Fellowship are expected beginning FY 2027/2028. From home console to PC to mobile, things aren't looking great for Embracer; whether or not this spin-off will help remains to be seen. We'll keep you posted.

Source: GamesIndustry.biz