European video games success story Embracer Group is spinning off the newly renamed Coffee Stain Group. 

In a release to investors, the company said that this firm – previously Coffee Stain and Friends – was going to be spun off into its own "community-driven" developers and publishers. The intention is for Coffee Stain to be spun off by the end of 2025. 

Coffee Stain Group includes Coffee Stain, Ghost Ships and Tuxedo Labs, in addition to some developers under the Amplifier Game Invest umbrella. IP includes Goat Simulator, Deep Rock Galactic, Satisfactory and Valheim. 

“We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years," Coffee Stain Group CEO and co-founder Anton Westbergh said. "Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary—but in a good way.

The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. We can now focus even more on what we do best—supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain. 

Embracer Group CEO Lars Wingefors added: “Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success. I am confident in Anton's strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents."

This news follows Embracer Group splitting off its tabletop-focused Asmodee, while also lumbering it with almost $1 billion in debt. Meanwhile, what was previously rebranded as Middle Earth and Friends just last year is being renamed once more as Fellowship Entertainment. This group includes Plaion, THQ Nordic and Warhorse Studios.