Embracer’s Name Is Going Away, CEO Denies It’s Due To Backlash And Controversy

Video Game Giant Embracer to Rebrand Following Company Split

Embracer, the well-known video game company, is undergoing a major transformation as it prepares to split into three separate entities. As part of this restructuring, the Embracer name will soon be retired.

CEO Lars Wingefors shared that a new holding company will be established, with him as the majority shareholder across all three divisions. While the new overarching company’s name has not been revealed yet, it signifies a new chapter for the organization.

Wingefors emphasized that the decision to rebrand is not about distancing from past controversies but rather a strategic move to allow each entity to establish its unique identity and maximize its potential in the market.

Three New Entities

Embracer will be split into Asmodee Group, Coffee Stain and Friends, and Middle-earth Enterprises and Friends. While the last two names are temporary placeholders, the official titles will be announced in due course.

Furthermore, Embracer secured €900 million from a group of banks, with most of the debt being transferred to Asmodee due to the perceived stability of its tabletop games business compared to video games.

Financial Stability and Controversies

Wingefors highlighted the importance of financial stability in an industry known for its volatility, particularly in the AAA games space. The restructuring comes after Embracer’s decision to cancel multiple games and lay off a significant number of employees earlier this year.

One of the major catalysts for these changes was a failed deal with Saudi Arabia’s Savvy Games, which led to significant repercussions for the company. Embracer’s previous ties with Saudi Arabia had sparked criticism regarding human rights issues.