According to Wccftech, last week saw publisher Arc Games and developer Cryptic Studios successfully execute a buyout from the struggling Embracer Group, with financing support from XD Inc. This move makes Arc Games an independent publisher, escaping the fate of other Embracer-owned studios like Volition Games that were shut down. The company, which has been operating for over 15 years, will not lay off any team members during this transition. CEO Yoon Im stated that 2026 is shaping up to be one of the company’s “most ambitious and innovative years.” Arc Games is known for publishing Remnant: From the Ashes, Remnant II, the Torchlight series, and MMOs like Star Trek Online and Neverwinter.
A Clean Escape
Here’s the thing: this is about the best-case scenario you could hope for in the current gaming climate. Embracer’s collapse, triggered by that infamous $2 billion deal that vanished, has been a bloodbath. Studios have been shuttered, projects canned, and thousands of jobs lost. For Arc and Cryptic to not only get out alive but to do so without a single layoff? That’s a minor miracle. It speaks to the underlying health and value of their portfolio. They weren’t a drain; they were an asset worth saving, and XD Inc. apparently saw that. Now, they don’t have to worry about being a line item on a massive, distressed parent company’s spreadsheet. That freedom is priceless.
The Double-A Advantage
So what does independence actually mean for them? Look, Arc Games has carved out a very specific, and lately very successful, niche in the double-A space. Remnant II was a smash hit that proved there’s a massive audience for polished, creative games that don’t need a $300 million budget. As an independent, they can double down on that. They can pursue partnerships and projects that make creative sense, not just financial sense for a giant conglomerate trying to service its debt. CEO Yoon Im’s quote about “collaborating with exceptional developers worldwide” is key. They’re positioning themselves as a nimble, developer-friendly publisher for teams that also want to avoid the AAA rat race or the indie scramble. That’s a sweet spot.
What’s Next For Arc?
The mention of 2026 being an “ambitious” year is intriguing, but it’s also a long way off. It tells us the real fruits of this independence won’t be visible overnight. The games they’re publishing now, like Fellowship or Hyper Light Breaker, were likely locked in under the old regime. The true test will be the slate they build from scratch now that they’re calling their own shots. Can they become a destination for top mid-tier talent? And let’s be real—while the no-layoff news is fantastic, the pressure is now squarely on them. There’s no big corporate umbrella to blame or hide under anymore. Every success and every failure is theirs alone. But honestly? After surviving the Embracer era, that probably feels like a welcome challenge.
