Mobile Developer Coffee Stain Malmö Shuts Down Following Parent Company Spin-Off from Embracer Group

Coffee Stain Malmö has closed its doors following the studio's spin-off from Embracer Group. Discover the impact on its 17 employees and the 2026 mobile gaming market.

By: AXL Media

Published: Apr 6, 2026, 10:38 AM EDT

Source: Information for this report was sourced from GamesIndustry.biz

End of an Era for Malmö-Based Mobile Team

Coffee Stain, the developer renowned for the Goat Simulator franchise, has officially shuttered its mobile-centric studio located in Malmö, Sweden. The announcement was made via LinkedIn by Daniel Persson, the studio’s Vice President of Mobile, who confirmed that his tenure leading the team has concluded. Persson expressed significant pride in the team's accomplishments, noting that building the office from its inception was one of the most rewarding experiences of his professional career.

Staff Impact and Operational Uncertainty

According to the studio’s official website, Coffee Stain Malmö employed 17 staff members at the time of the closure. It remains currently unclear whether these employees have been laid off entirely or if there are opportunities for reassignment within the broader Coffee Stain Group. The studio was established as a strategic move to bolster Coffee Stain's presence in the mobile gaming market, and its dissolution marks a shift in the company's regional operational footprint.

Context of the Embracer Group Spin-Off

The closure occurs just months after Coffee Stain was spun out from its former parent company, Embracer Group, in December 2025. This move was part of a massive strategic reorganization announced in April 2024, which split the Embracer conglomerate into three distinct entities: Asmodee Group, Coffee Stain Group (formerly Coffee Stain and Friends), and Fellowship Entertainment (formerly Middle-earth Enterprises). While Embracer CEO Phil Rogers previously expressed high confidence in Coffee Stain’s future as a standalone company, this closure suggests a tightening of focus as the group establishes its independent path.