Embracer Group is embarking on a new phase of significant restructuring within its massive operations, as it has revealed plans to separate its Coffee Stain segment into an independent entity, while also rebranding the Lord of the Rings division to Fellowship Entertainment.

In 2024, Embracer declared its intention to fragment into three separate entities catering to distinct areas of gaming: Asmodee for tabletop and other physical games, Coffee Stain for indie and free-to-play offerings, and Middle-Earth & Friends for managing the classic Tolkien legacy.

Coffee Stain will transform into its own group of developers and publishers by the end of 2025, tasked with overseeing approximately 250 game developers globally, including studios like Ghost Ship Games and Tuxedo Labs.
Anton Westbergh, CEO of Coffee Stain, commented, “We’re really proud of everything we’ve built as part of Embracer. The games industry is more competitive than ever, but also more rewarding if you do things right…”

On the other hand, the scope of Middle-Earth & Friends will largely remain intact beyond the name change to Fellowship Entertainment, now aiming to consolidate its position as a comprehensive entity focused on both game development and publishing.
Lars Wingefors, CEO of Embracer stated, “We are confident in this strategic move which promises clarity and strengthens our partnerships with independent game developers.”

This restructuring reflects Embracer’s intent to streamline its expansive operations in a rapidly evolving industry landscape.

For further details, you can check the official press release.