Arc Games has officially stepped out from under the shadow of Embracer Group and into the spotlight as one of the newest independent double-A game publishers in the industry. After years of operating as part of Embracer’s sprawling portfolio, the company has successfully bought itself out and is now charting its own future, backed financially by Chinese company XD Inc. The move comes at a turbulent time for Embracer, but marks a rare happy ending in a restructuring story that has already claimed several studios.
Over the last few years, Embracer Group aggressively acquired studios and publishers across the globe, building a massive catalogue of IP and teams. 
That strategy collapsed when a reported multibillion-dollar deal fell through, leaving the group scrambling to cut costs, cancel projects, and shutter developers. Among the casualties were Volition Games, the long-running Saints Row studio, and Free Radical Design, known for TimeSplitters, both closed before they could be saved. Arc Games and its long-time development partner Cryptic Studios have avoided that fate by negotiating a clean break that keeps the company intact.
The new arrangement turns Arc Games into an independent publisher with funding support from XD Inc., but without disrupting its internal structure. Management remains in place, teams stay together, and crucially, there are no layoffs planned as part of the transition. In a climate where acquisition drama usually translates into job losses, this makes Arc’s story stand out as a rare example of stability and continuity. Instead of being folded, downsized, or quietly wound down, the publisher now has room to grow on its own terms.
Chief executive officer Yoon Im described the buyout as a turning point for the company. Having spent more than fifteen years building games and communities under various owners, Arc’s leadership now sees independence as a chance to fully align business decisions with creative ambitions. The team wants to work closely with a global network of partner studios, help them ship distinctive games, and invest in projects that may be too risky or experimental for risk-averse mega-publishers. Internally, 2026 is already being framed as one of the most ambitious years in Arc’s history, with multiple unannounced titles in development and a renewed focus on player-first publishing.
Arc Games already comes into this new era with a substantial catalogue. The company is the publisher behind the co-op action hits Remnant: From the Ashes and Remnant II, which carved out a loyal audience thanks to their challenging gunplay and intricate world-building. It also steers long-running online titles such as Star Trek Online and Neverwinter, which still maintain engaged communities years after launch. On the more experimental side, Arc has helped bring games like the Torchlight series, Have a Nice Death, Hyper Light Breaker, and the recent Fellowship to market, positioning itself as a champion of distinctive, slightly off-center projects.
This portfolio underscores why Arc fits so naturally into the double-A space. These are not tiny indie experiments, but they also are not the kind of nine-figure blockbusters that dominate the AAA arena. Double-A games usually offer focused scope, strong mechanical hooks, and reasonable budgets that allow for creativity without demanding every title become a live-service juggernaut. With the freedom that comes from independence and a financial safety net from XD Inc., Arc Games is now well placed to keep exploring that middle ground and provide a home for studios that want ambition without unsustainable pressure.
For players, the transition should feel largely seamless in the short term: existing titles will continue to run, live-service games will keep receiving updates, and there are no announced changes to monetization or regional availability. The real impact is likely to become visible over the next couple of years as Arc’s upcoming slate takes shape. If the company can combine its proven strengths in online worlds and co-op action with the flexibility of an independent publisher, the newly freed Arc Games could quietly become one of the most important names in the double-A landscape.