Embracer Group has just announced its intentions to spin-off Fellowship Entertainment. This soon-to-be standalone division acts as the primary home for all Embracer-owned entertainment IPs, including the likes of Saints Row, Deus Ex, and Red Faction, all of which are currently being shopped around to external partners, according to Embracer itself.
A Swedish media company founded in 2011, Embracer Group consists of a handful of key operating groups. These groups include THQ Nordic, Plaion, Dark Horse Media, Crystal Dynamics Entertainment, Freemode, and DECA Games. In 2025, Embracer spun off two of its subsidiaries: Coffee Stain and Asmodee. While the former acts as Embracer's primary home for indie development and publishing, the latter handles Embracer's board game production. Now, Embracer has announced a third spin-off.
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Embracer Is Actively Exploring External Partnerships for Some Major IPs
Announced on May 20 via an open letter from Embracer Group's chairman Lars Wingefors, Fellowship Entertainment will be a new Embracer spin-off that will be listed on the Nasdaq main market in 2027. Fellowship Entertainment was originally formed by Embracer Group last year, with it acting as the new banner all of its video game IP would fall under. According to Wingefors' open letter, the main rationale behind this decision to spin-off Fellowship Entertainment is that it will "increase management focus to capture the full joint potential of the IPs," and that as a standalone business it will "have more attractive and easy-to-understand investor communication and...attract a larger pool of international investors."
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With regard to the hundreds of IPs currently owned by Embracer Group and now housed under Fellowship Entertainment, Wingefors states that they are "among the most undervalued in the industry" and that "it’s [his] duty as the largest shareholder to change this and create a structure to realize their full potential." His plans to achieve this are to increase the cadence of releases, aiming to launch at least two games per year starting in fiscal year 2027/2028, as well as adapting "new technologies and AI," and "above all else: an increased management focus."
Along with expanding its output of Lord of the Rings and Tomb Raider-related products, Embracer Group sees potential in both investing its own capital and forming new partnerships around AAA IPs like Kingdom Come: Deliverance, Dead Island, Remnant, Darksiders, and Metro. Additionally, Embracer "will more actively be exploring external partnership" around its other gaming IPs, such as Saints Row, Legacy of Kain, Deus Ex, Red Faction, The Mask, Thief, and TimeSplitters. There's no guarantee that any of these franchises will be revived in the near future, but there's at least a possibility now that Embracer is actively searching for external partners to work on these IPs.
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Embracer Comments on 2023 Layoffs
Interestingly, Embracer chairman Lars Wingefors also uses this open letter to address the mass layoffs and multiple studio closures that have continued to occur in the company since June 2023. Wingefors had this to say:
"Even if, for some, we have become closely associated with industry layoffs, the reality is that we have worked hard to retain as many people as possible through a very difficult period... Looking back at the large adjustment we made in 2023, we decided not to do a hard “US Corporate style” headcount reduction, but to give a number of studios and IPs the chance to prove themselves. We have been and are still adjusting to a new industry post-pandemic to drive value."