Fellowship Entertainment will separate from Embracer Group in 2027, carrying with it "The Lord of the Rings," Tomb Raider, Metro, Kingdom Come: Deliverance, and eleven named studios including 4A Games, Crystal Dynamics, and Eidos-Montréal. Embracer has not yet set a precise date for the split.

The separation completes a three-way restructuring Embracer first outlined two years ago. The plan called for Asmodee Group, Coffee Stain Group, and Fellowship Entertainment to register independently on Nasdaq Stockholm, with Embracer AB continuing as a long-term shareholder of all three. Asmodee and Coffee Stain have already exited; Fellowship is the final piece.

Which studios and IP move to Fellowship Entertainment?

Fellowship takes control of 4A Games, Crystal Dynamics, Dambuster Studios, Dark Horse Media, Eidos-Montréal, Fishlabs, Flying Wild Hog Studios, Gunfire Games, Middle-earth Enterprises, Redoctane Games, and Warhorse Studios. The roster concentrates the holding's premium single-player and licensed-IP development under one publisher — 4A Games (Metro), Warhorse Studios (Kingdom Come: Deliverance), and Crystal Dynamics (Tomb Raider) among them.

The accompanying IP portfolio makes Fellowship one of the most asset-heavy independent publishers to emerge from the current wave of holding-company breakups. Middle-earth Enterprises holds the commercial rights to J.R.R. Tolkien's literary works for film, merchandise, and games — a license Fellowship will now manage directly rather than through Embracer's corporate layer.

Tomb Raider, Metro, and Kingdom Come: Deliverance each anchor a multi-game franchise line with sequels or remakes already in production at the receiving studios.

What stays inside Embracer Group?

The remainder keeps Aspyr, Beamdog, CrazyLabs, Deca, Demiurge, DPI Merchandising, Limited Run Games, Milestone, PLAION Partners, PLAION Pictures, Tripwire, Vertigo Games, and THQ Nordic. THQ Nordic alone operates 35 subsidiary studios and companies under the holding.

Retained franchises include Gothic, Titan Quest, Killing Floor, Destroy All Humans!, and Biomutant — a catalog weighted toward mid-budget PC and console releases, with a notable mobile footprint through CrazyLabs.

What changes operationally?

Embracer says the split gives both entities more room to pursue distinct strategies. Fellowship Entertainment will concentrate on game development, publishing, and licensing. Embracer, with a smaller and more diversified portfolio, will once again engage in mergers and acquisitions — the dealmaking posture it adopted before the restructuring program began.

For the studios moving to Fellowship, the immediate change is corporate rather than operational. Day-to-day development on Metro, Kingdom Come: Deliverance, and the next Tomb Raider entry continues under existing project leadership. The longer-term structural shift is funding: standalone publishers must finance AAA pipelines from their own revenue rather than rely on cross-portfolio support from a larger parent.

When does this take effect?

The exact split date is undetermined within the 2027 window. The holding has not disclosed the financial structure — whether through a spin-off distribution to shareholders, a direct listing, or another mechanism. The Nasdaq Stockholm registration timeline for Fellowship also remains unspecified.

The next 12 months will test whether Fellowship can sustain its development slate as an independent publisher. Watch for governance disclosures, debt allocation between the two entities, and the first standalone earnings report from Fellowship once it trades on Nasdaq Stockholm. Investors will also be looking for clarity on Embracer AB's eventual shareholding in each entity, given its planned role as a long-term shareholder across all three listed companies.