Embracer sells two more companies from its acquisition spree era, as Remnant and Neverwinter firms offloaded

Neverwinter developer, Cryptic Studios, and Arc Games, publisher of Remnant: From the Ashes, has been sold off by Embracer Group.

The two companies have been acquired by Project Golden Arc, owned and led by members of the Arc Games management team, in a $30 million deal funded by XD Inc.

Arc Games (formerly known as Perfect World Entertainment and Gearbox Publishing San Francisco) is the publisher behind live service games such as Star Trek Online and Neverwinter, as well as Remnant: From The Ashes and Remnant II, Torchlight, Hyper Light Breaker, and the recently released Fellowship.

Cryptic Studios is the experienced MMO developer behind City of Heroes, Neverwinter, and Star Trek Online.

Embracer acquired the two companies in 2021, as part of its now-notorious acquisition spree, which resulted in thousands of layoffs and multiple studio closures. Many of its surviving purchased studios have since been sold, including Borderlands maker Gearbox and Saber Interactive.

As part of the deal, the publishing rights for the Remnant franchise will be transferred from Arc Games to Embracer’s THQ Nordic, which already owns the Remnant IP rights and the development studio Gunfire Games.

The rights for the multiplayer online game Fellowship will be part of Coffee Stain, which is expected to be spun off from Embracer and publicly listed.

Phil Rogers, CEO of Embracer, said: “This transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow.

“The deal also allows online multiplayer game Fellowship, developed by a talented external team in Stockholm, to find a great home within Coffee Stain Group.

“I would like to thank the teams at Arc and Cryptic for their hard work over the past four years and wish them all the best as we are confident they will thrive and develop in the years ahead.