Arc Games Breaks Away from Embracer, Taking Cryptic Studios With It

Embracer Group, the Swedish holding company that a few years ago snapped up teams, IPs, and brands, becoming – at least on paper – the largest publishing power on the market, as is well known, quickly [too quickly] reached the peak of its upward trajectory and just as quickly plummeted.

Today, we receive news of two new "pieces" that the company has recently divested: we are talking about Arc Games, known for Ether Saga Online, Forsaken World, and Swordsman Online, and Cryptic Studios, creators of City of Heroes/City of Villains, Star Trek Online, and Neverwinter, among others.

"This transition supports our key priorities of reinforcing our focus on strategic assets and core IPs within Embracer by increasing profitability and cash flow," commented Phil Rogers, CEO of Embracer [we leave the interpretation to you].

However, not all bad things may be for naught, as the buyer of the two development teams is a group calling itself Project Golden Arc and is headed by none other than the founders of Arc Studios, who secured financing through XD Inc. The $30 Million transition thus puts the two teams, specialized in MMORPGs and online content, back in the hands of those who have always used them to create games and content and not just engage in financial maneuvering.

Embracer still owns several teams and IPs, as well as rights to important sagas including The Lord of the Rings; however, the fact that the MMO related to the saga in question, in development for Amazon Games, was reportedly quietly canceled could coincide with the divestment of two teams specialized precisely in online content...