Coffee Stain Malmö shuts down months after Embracer spinoff

• The studio supported mobile adaptations linked to established franchises including Goat Simulator 3 and Songs of Conquest.
• Coffee Stain Publishing became an independent company in 2025 following its separation from Embracer Group.
• The shutdown adds to a growing list of studio closures tied to Embracer’s multi-year restructuring programme.

Swedish mobile developer Coffee Stain Malmö has closed less than six months after spinning off from Embracer Group.

The closure was confirmed by Coffee Stain Malmö vice president of mobile Daniel Persson, who revealed on LinkedIn that his role at the company has come to an end following the shutdown of the Malmö office. 

“Building this office from the ground up has been one of the most rewarding experiences of my career," said Persson. “It started as an idea, that grew into an amazing team of talented people. I couldn't be more proud of what we have accomplished together.

“To every single person who was part of this journey: Thank you. Your skill, dedication, and creativity made this place what it was. I wholeheartedly recommend each and every one of you. Any team lucky enough to bring you on board will be better for it."

Restructuring fallout continues

According to the company’s website, Coffee Stain Malmö employed 17 staff. It remains unclear whether all employees have been laid off as a direct result of the closure or reassigned elsewhere within the Coffee Stain network.

Coffee Stain Malmö contributed to several mobile adaptations tied to established franchises, including work connected to Goat Simulator 3 and Songs of Conquest Mobile. 

The studio operated as a subsidiary of Coffee Stain Publishing, which became an independent entity in December 2025 after being spun out of Embracer Group as part of a wider corporate separation.