Embracer Group Splits Into Three – Wreckfest, Milestone, Set For New Homes

Embracer Group Splits Into Three – New Homes For Wreckfest, Milestone.jpg
Two racing game publishers are now forging their own paths as Embracer splinters into three separate companies.

Embracer Group is breaking apart: say hello to Asmodee, Coffee Stain & Friends and Middle-earth Enterprises & Friends.

The beleaguered Swedish gaming giant has been reducing in size of late, following widespread redundancies this year and last, the sale of the Gearbox to Take-Two and Saber Interactive being sold to founder Matthew Karch.

That meant SnowRunner, Expeditions: A MudRunner Game and Dakar Desert Rally have been placed under the control of Beacon Interactive. It will also publish the upcoming Heading Out.

Today, 22nd April, what remains of Embracer Group has split into three companies, two of which will be listed on Nasdaq Stockholm.

Asmodee will focus on board games, trading cards and digital board games, but for OverTake readers, the other two companies are perhaps more pertinent.

“Coffee Stain & Friends” will be a PC, mobile and console gaming outfit. It will incorporate THQ Nordic, and therefore Wreckfest (featured image) developers Bugbear Entertainment, thought to be currently working on a new project.

MX vs ATV Legends, by Rainbow Studios, now to be part of Coffee Stain and Friends.jpg

MX vs ATV Legends, by Rainbow Studios, currently set to be part of "Coffee Stain & Friends"

Rainbow Studios is also in the new caffeinated business, creators of 13 motocross and/or ATV games. This includes the contemporary MX vs ATV Legends, which recently secured the rights to official Monster Energy Supercross content.

The expected open-world collaborative track-creation game from a team of ex-Burnout creators, Wreckreation, is also under the THQ Nordic umbrella.

Plaion, meanwhile, finds itself under “Middle-earth Enterprises & Friends”, which will focus on AAA game development and is, in effect, what is left of the original Embracer Group.

That means Italian developer Milestone – currently stewards of the official MotoGP games, plus Hot Wheels Unleashed, Ride and the upcoming Monster Jam Showdown – will be placed within a company primarily focussed on Tomb Raider and The Lord of the Rings intellectual properties.

MotoGP 24, created by Milestone, under the stewardship of Plaion, now set to be part of Middle...jpg

MotoGP 24, created by Milestone, under the stewardship of Plaion, currently set to be part of "Middle-earth Enterprises & Friends"

The final names of these companies will be decided later. Asmodee and “CoffeeStain & Friends” will be traded publicly as separate entities, while Middle-earth Enterprises & Friends will sit under the existing Embracer Group listing.

The listing and distribution of shares in “Coffee Stain & Friends” is scheduled to happen next year.

“The Board of Directors, together with executive management, propose to transform Embracer Group into three separate, listed companies,” said Kicki Wallje-Lund, Chair of the Board of Embracer Group.

“This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction,” said Lars Wingefors, co-founder and Group CEO of Embracer Group.

This move towards three independent companies reinforces Embracer’s vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.”

As this is expected to take up to 12 months to organise, the situation has been dubbed an "intention" by Wingefors, with details "communicated along the journey."

Proposed Embracer Group Racing Game Split​

  • “Coffee Stain & Friends” - Includes THQ Nordic (Wreckfest, MX vs ATV Legends, Wreckreation)
  • “Middle-earth Enterprises & Friends” - Includes Plaion, which oversees Milestone (MotoGP, Monster Jam, Ride, Hot Wheels)
  • Beacon Interactive, a new company founded in March that purchased studios and IP from Embracer - Includes Saber Interactive (SnowRunner, Expeditions: A MudRunner Game and Dakar Desert Rally. Publishing Heading Out)
About author
Thomas Harrison-Lord
A freelance sim racing, motorsport and automotive journalist. Credits include Autosport Magazine, Motorsport.com, RaceDepartment, OverTake, Traxion and TheSixthAxis.

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