Embracer Group has officially announced plans to spin off Fellowship Entertainment into a standalone company that will be listed on the Nasdaq main market in 2027. The move represents another major restructuring step for the company as it continues reshaping its business after years of rapid expansion, acquisitions, and industry-wide turbulence.
Fellowship Entertainment was originally established to house many of Embracer’s most important gaming and entertainment properties under one umbrella. By separating the division into its own publicly traded company, Embracer says it hopes to improve management focus, simplify communication with investors, and create better long-term growth opportunities for its intellectual properties.
Embracer Wants Faster Releases and More Focused Development
Chairman Lars Wingefors described the company’s IP catalog as one of the most undervalued collections in the gaming industry. According to the announcement, the new structure is designed to help Fellowship Entertainment move more efficiently while increasing the value of its franchises through tighter management and more focused investment strategies.
The company also confirmed plans to increase production output beginning in fiscal year 2027/2028. Fellowship Entertainment intends to release at least two games per year while also exploring the use of new technologies and AI-assisted development tools to help support future projects.
The mention of AI adoption is likely to spark mixed reactions across the gaming community, especially as concerns continue to grow regarding layoffs, automation, and the increasing role of AI within game development pipelines.
Major Franchises Included in the Spin-Off
Fellowship Entertainment will oversee several of Embracer’s largest gaming brands and entertainment properties. The company specifically highlighted continued investment and expansion plans for franchises such as Lord of the Rings and Tomb Raider.
Additional franchises mentioned in the company’s future partnership strategy include:
- Kingdom Come: Deliverance
- Dead Island
- Remnant
- Darksiders
- Metro
At the same time, Embracer confirmed it will more actively seek external partnership opportunities for several dormant or uncertain franchises. These include:
- Saints Row
- Legacy of Kain
- Deus Ex
- Red Faction
- Thief
- TimeSplitters
- The Mask
However, the company stopped short of confirming active revivals, sequels, or reboot projects for any of these IPs. Instead, Embracer stated it is exploring partnership possibilities, meaning fans should not expect immediate announcements or guaranteed returns for these franchises.
Another Major Shift for Embracer
The spin-off follows previous restructuring efforts involving Coffee Stain and Asmodee in 2025. Over the last several years, Embracer has undergone significant internal changes after aggressive expansion left the company struggling to manage its enormous portfolio of studios and intellectual properties.
Wingefors also addressed the company’s controversial 2023 restructuring period, which resulted in widespread layoffs, canceled projects, and studio shutdowns throughout the gaming industry. He stated that Embracer attempted to avoid harder large-scale cuts while adapting to difficult post-pandemic market conditions.
Despite criticism surrounding those restructuring efforts, Embracer appears determined to reposition itself around stronger franchise management, external partnerships, and long-term IP growth.
Whether this new structure ultimately benefits the company remains to be seen, but the future of several beloved franchises may now depend heavily on how Fellowship Entertainment operates once it officially becomes independent in 2027.
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