Embracer announces split into two companies next year

Embracer Group plans to divide into two separate public companies, with Fellowship Entertainment taking major franchises including Lord of the Rings and Tomb Raider.

Embracer Group announced on May 20 that it will split into two legally distinct public companies next year. Fellowship Entertainment will control key intellectual properties such as The Lord of the Rings, Tomb Raider, Deus Ex, and Metro, along with studios including Eidos Montreal and Warhorse Studios. The new entity will also handle IP licensing to external partners.

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Warner Bros. Games executive announcing returns to major franchises like Hogwarts Legacy in 2027-28 at a press conference.
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Warner Bros. Games teases returns to major franchises in 2027-28

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Warner Bros. Games has announced plans to return to its biggest franchises in 2027 and 2028, following a period of resets and challenges. The publisher's leader highlighted upcoming releases after recent flops and studio changes. This comes amid speculation about sequels to popular titles like Hogwarts Legacy.

Insider Gaming reports that Crystal Dynamics, known for the Tomb Raider series, is the main developer on at least one Lord of the Rings project for Embracer Group. This comes shortly after rumours emerged about Warhorse Studios also pursuing a Middle-earth title. Both studios and Embracer have declined to comment on the speculation.

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Fresh rumours indicate that Warhorse Studios, developer of Kingdom Come: Deliverance 2, is working on a major Lord of the Rings project. Industry veteran Ryszard Chojnowski cited credible sources claiming Warhorse's involvement in Embracer Group's Middle-earth game, partially funded by the Abu Dhabi Investment Office. The speculation links to a late 2025 report detailing a third-person action title aiming to rival Hogwarts Legacy.

Amazon Game Studios has terminated its publishing agreement with Maverick Games for an upcoming narrative-led racing game. The decision aligns with Amazon's shift away from triple-A titles toward projects like Luna and Tomb Raider. Maverick Games, founded by former Forza Horizon developers, is seeking a new publisher while continuing development.

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Arcanaut Studios has secured major backing for its Star Wars role-playing game from former NetEase executive Simon Zhu. The funding comes via his newly formed GreaterThan Group. Director Casey Hudson has shared details on the studio's approach to development.

CI Games has signed a separation agreement with Epic Games that ends the PC exclusivity deal for Lords of the Fallen 2. The agreement took effect on April 14, 2026, and permits the game to launch on other storefronts including Steam. Console versions remain unaffected.

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1047 Games is developing a new movement shooter titled Empulse. The project is described as a spiritual successor to Titanfall and remains in pre-alpha without a release date.

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