The Embracer Group, the massive holding company that famously swallowed Asmodee, Dark Horse Comics, and Middle-earth Enterprises, has lately been in a cycle of divestment. In a change to the usual narrative of consolidation, Arc Games has today announced it has successfully bought itself out of the Embracer ecosystem.
Backed by financing from Hong Kong-based XD Inc., Arc Games is now a fully independent publisher. The move separates the publisher of the Neverwinter Dungeons & Dragons MMO and Star Trek Online from the same corporate umbrella that holds the board game giant Asmodee.
For tabletop gamers, the separation is significant. Arc Games (formerly Perfect World Entertainment) has long held a unique position in the digital translation of tabletop IPs. By breaking away from Embracer, the digital stewardship of Neverwinter is no longer under the same roof as the company dominating the physical board game market.
Furthermore, Arc Games confirmed it retains its publishing role for the upcoming digital adaptation of Frosthaven, the sequel to the colossal dungeon-crawler Gloomhaven.
A Reverse Trend
While gamers have become accustomed to headlines about Embracer acquiring studios, this management buyout represents a strategic retreat for the Swedish giant. Embracer has been undergoing a heavy restructuring programme following the collapse of a reported $2 billion partnership deal last year. This has led to the closure of studios like Volition and the sale of Gearbox Entertainment.
For Arc Games, the buyout secures autonomy. Yoon Im will remain as Chief Executive Officer, retaining the existing leadership team.
“This milestone marks a major new chapter for Arc Games,” Im told the press. “We appreciate our time being part of Embracer Group and the accomplishments achieved since the company’s inception over 15 years ago. These experiences have shaped who we are today.”
Im added, “As an independent publisher, we are now positioned to more fully pursue our vision—collaborating with exceptional developers worldwide and bringing standout games to market. 2026 is already shaping up to be one of the most ambitious and innovative years in our history, and we are excited for what lies ahead.”
What Stays and What Goes
The separation is relatively clean, but there are caveats regarding intellectual property. While Arc Games regains its independence, Embracer Group will retain the publishing rights to the Remnant franchise (Remnant: From the Ashes and Remnant II). However, Arc Games will continue to be credited as a co-publisher on existing titles.
However, Arc Games keeps its live-service heavy hitters:
- Neverwinter: The long-running MMORPG based on Dungeons & Dragons.
- Star Trek Online: The expansive sci-fi MMO that continues to receive updates.
- Frosthaven: The highly anticipated digital port of the board game.
- Have a Nice Death: The stylish indie roguelike.
The deal was financed by XD Inc., a company known for the TapTap game distribution platform and titles like Torchlight: Infinite. This partnership provides Arc Games with the capital to operate independently without being immediately absorbed into another conglomerate.
For fans of the Frosthaven board game, this likely ensures that the digital adaptation remains a priority for the publisher, rather than risking cancellation in a wider corporate cost-cutting exercise.
The move leaves Embracer with a lighter portfolio but still in control of Middle-earth Enterprises and Asmodee, maintaining their stronghold on the physical side of the hobby. At the same time, Arc Games charts a solo course in the digital space.
