Embracer Split Puts Tomb Raider Under Fellowship

For readers in the UK games scene, Embracer Group’s latest restructure is a big one. The company has announced that it will split into two public companies, with Fellowship Entertainment taking charge of major intellectual properties including Tomb Raider and The Lord of the Rings.

Fellowship Entertainment is planned for 2027 and will operate as an IP-led entertainment company. Its focus will be development, publishing and licensing, with stewardship of Middle-earth Enterprises’ Lord of the Rings IP, plus game franchises such as Tomb Raider, Darksiders, Dead Island, Kingdom Come Deliverance, Metro and Remnant.

Several studios will move under Fellowship Entertainment too, including 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Redoctane Games and Warhorse Studios. The aim is to give those teams and properties a more focused structure.

The remaining Embracer Group will stay as a decentralised business. It will keep IPs such as Destroy All Humans!, Desperados, Gothic, Killing Floor, Kingdom of Amalur, MX vs. ATV, Reanimal, Ride, Screamer, Titan Quest and Wreckfest, along with licences including Hot Wheels Unleashed and SpongeBob SquarePants.

Companies staying under the Embracer banner include Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, Plaion Partners, Plaion Pictures, THQ Nordic, Tripwire and Vertigo Games. THQ Nordic itself includes 35 studios and subsidiaries.

In a letter to shareholders, Lars Wingefors, chair of the board of Embracer Group, said the main reason for spinning off Fellowship is to “increase management focus to capture the full joint potential of the IPs, their respective communities and some of the best game developers in the world.” He also said the assets held by Fellowship are “among the most undervalued in the industry.”

This split follows a turbulent period for Embracer, after its acquisition spree led to thousands of layoffs and multiple studio closures during a 2023 reset. That reset also saw the sale of Borderlands maker Gearbox and Saber Interactive. Wingefors said the company tried to retain as many people as possible through a difficult period, rather than using a “hard US Corporate style” headcount reduction.

For fans, the key question is how this will affect the long-term care of series like Tomb Raider. A dedicated company could mean clearer direction for those brands, but it also puts them under pressure to deliver. For more RetroShell coverage, see our news tag.