Embracer shakes up its gaming divisions: Lord of the Rings group rebranded, Coffee Stain spins off

Embracer Group has announced that it is spinning off its indie label, Coffe Stain, and rebranding its Middle-Earth and Friends brand.

Last year, Embracer group announced that it would split into three separate companies. Embracer split into Asmodee, Coffee Stain & Friends and Middle-earth Enterprises & Friends – each of which was listed as a separate company on Nasdasq Stockholm.

Now the company has announced that it has renamed its premium label and spun off its indie label into its own standalone group.

Middle-Earth and Friends will now be known as Fellowship Entertainment and handle IP such as The Lord of the Rings, Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Tomb Raider, and more.

Fellowship Entertainment includes developers 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, among more than 40 other companies.

When it was announced, Coffee Stain & Friends was set to focus on PC, console and mobile games, including “community-driven free-to-play games, LiveOps games and indie / AA games”.

“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,” said Anton Westbergh, co-founder and Group CEO of Coffee Stain.

“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.”

Lars Wingefors, co-founder and Group CEO of Embracer, said: “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.”