Is Warhorse Studios profitable?

Pre-acquisition, Warhorse posted 2018 net revenue of about 42 million euros with adjusted EBIT near 28 million euros. Kingdom Come Deliverance II has since sold over 6 million copies by June 24, 2026, suggesting strong ongoing revenue, though no standalone post-acquisition profit figures have been disclosed by parent Embracer.

Could AI replace Warhorse Studios' developers?

Partially in peripheral roles. On March 27, 2026 Warhorse terminated a Czech-to-English translator/editor and replaced the function with AI translation. Core narrative writing, the 2.2 million word KCD2 script, and historical design craft remain human-led and are considered AI-resistant by industry observers.

Who owns Warhorse Studios?

Warhorse is a wholly-owned subsidiary of Plaion (formerly Koch Media), acquired for 42.8 million euros on February 13, 2019, under Sweden's Embracer Group. As of May 21, 2026, Embracer plans to spin Warhorse into a new entity, Fellowship Entertainment, targeting a Nasdaq Stockholm listing in 2027.

Who is Warhorse Studios' biggest competitor?

Journalists and Warhorse's own communications director have framed Bethesda Game Studios, maker of Elder Scrolls and Fallout, as the incumbent 'king of RPGs' Warhorse is positioned to challenge as of May 23, 2026, though Bethesda has not shipped a directly competing historical RPG.

Has Warhorse Studios had layoffs?

No broad studio-wide layoffs have been reported. The one confirmed cut is a Czech-to-English translator/editor, employed since July 2022, terminated on March 27, 2026 and told the role was being replaced by AI-driven translation.

How well is Kingdom Come Deliverance II selling?

Kingdom Come Deliverance II, released February 4, 2025, sold 1 million copies in 24 hours, reached 5 million by February 12, 2026, and surpassed 6 million copies by June 24, 2026, alongside a 2025 BAFTA for Best Narrative and PC Gamer Game of the Year.

Gaming companies · subsidiary of Embracer Group (via Koch Media/Plaion; transferring to Fellowship Entertainment spin-off in 2027) · Czech Republic

Warhorse Studios

warhorsestudios.cz ↗

Czech studio behind Kingdom Come: Deliverance, owned by Embracer/Plaion.

Protection under test

Assessed 23 July 2026 · Evidence as of 23 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 23 July 2026 · Checkable from 2027 · Every call on the record Checkpoint: Fellowship Entertainment Nasdaq Stockholm IPO

The call

The games sell and win awards, but the studio is heading into a spin-off IPO with a 2 to 3 year gap before its next title ships.

Warhorse Studios makes story-driven fantasy games set in real history, most famously Kingdom Come 2, which sold over 6 million copies and won major awards. The studio is good at something hard to copy: building games that feel genuinely historical and detailed, plus it owns the Kingdom Come brand and has a license to make Lord of the Rings games. The danger is that Warhorse is owned by a parent company that is spinning off and may run short on cash before the studio finishes its next two big games (Kingdom Come 3 and a Lord of the Rings title), and a sister studio is also making a Lord of the Rings game that could cannibalize Warhorse's project. The real test comes in 2027 when the parent company goes public on the Stockholm stock exchange; if it struggles to raise money or loses faith in the games, Warhorse's timeline could crack.

Why

AI pressure: None apparent. AI shows up as a cost tool, a translator was cut in March 2026, not as a rival making games like theirs. Could AI do the core job? Unlikely.

Bigger players: Bethesda Game Studios. Bethesda owns the historical RPG audience but has shipped nothing to directly compete with Kingdom Come's approach yet. Could a giant copy it? Probably.

What protects it. Deep, well reviewed historical RPG expertise and an owned IP that sold over 10 million copies.

What would change this call

Fellowship Entertainment prices its Nasdaq Stockholm IPO in 2027. Shows whether investors value the spin-off strongly or weakly.
Kingdom Come 3 hits or misses its FY2027/28 launch window. Tests whether Warhorse can deliver its next AAA title on schedule.
Public announcement of which studio, Warhorse or Crystal Dynamics, retains the LOTR game mandate. Reveals whether Warhorse's LOTR project survives internal competition.

Key numbers

KCD2 sold 6M+ copies (2026)
KCD franchise: 10M+ lifetime copies (2025-12-31)
Embracer Q4 FY2026 net sales SEK 3.9bn (2026-05-21)

Named risks

Fellowship Entertainment 2027 Nasdaq Stockholm IPO could slip or price poorly. Severity: high
2 to 3 year revenue gap before next AAA titles ship in FY2027/28. Severity: medium
Internal LOTR project collision with Crystal Dynamics could cause reassignment or cancellation. Severity: medium
AI-translation firing raises labor and reputational exposure amid unverified legal implications. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Bethesda Game Studios	contesting	Warhorse framed as challenging Bethesda's RPG dominance, per May 23, 2026 report
Crystal Dynamics	contesting	Internal Embracer studio reportedly developing rival LOTR title as of May 21, 2026
CD Projekt Red	gaining on	Peer in narrative open-world RPGs; KCD2 outsold prior KCD title by wide margin through 2026
Larian Studios	contesting	Comparable narrative-scale peer; KCD2 script exceeds Baldur's Gate 3 word count

Questions people ask

Is Warhorse Studios profitable?: Pre-acquisition, Warhorse posted 2018 net revenue of about 42 million euros with adjusted EBIT near 28 million euros. Kingdom Come Deliverance II has since sold over 6 million copies by June 24, 2026, suggesting strong ongoing revenue, though no standalone post-acquisition profit figures have been disclosed by parent Embracer.
Could AI replace Warhorse Studios' developers?: Partially in peripheral roles. On March 27, 2026 Warhorse terminated a Czech-to-English translator/editor and replaced the function with AI translation. Core narrative writing, the 2.2 million word KCD2 script, and historical design craft remain human-led and are considered AI-resistant by industry observers.
Who owns Warhorse Studios?: Warhorse is a wholly-owned subsidiary of Plaion (formerly Koch Media), acquired for 42.8 million euros on February 13, 2019, under Sweden's Embracer Group. As of May 21, 2026, Embracer plans to spin Warhorse into a new entity, Fellowship Entertainment, targeting a Nasdaq Stockholm listing in 2027.
Who is Warhorse Studios' biggest competitor?: Journalists and Warhorse's own communications director have framed Bethesda Game Studios, maker of Elder Scrolls and Fallout, as the incumbent 'king of RPGs' Warhorse is positioned to challenge as of May 23, 2026, though Bethesda has not shipped a directly competing historical RPG.
Has Warhorse Studios had layoffs?: No broad studio-wide layoffs have been reported. The one confirmed cut is a Czech-to-English translator/editor, employed since July 2022, terminated on March 27, 2026 and told the role was being replaced by AI-driven translation.
How well is Kingdom Come Deliverance II selling?: Kingdom Come Deliverance II, released February 4, 2025, sold 1 million copies in 24 hours, reached 5 million by February 12, 2026, and surpassed 6 million copies by June 24, 2026, alongside a 2025 BAFTA for Best Narrative and PC Gamer Game of the Year.

Timeline

2026-05-27New Kingdom Come title confirmed open-world, targeting Embracer FY2027/28 release
2026-05-21Embracer announces split; Warhorse moves into Fellowship Entertainment spinoff for 2027 IPO
2026-05-20Warhorse announces new Kingdom Come entry and open-world Middle-earth/LOTR RPG
2026-03-27Czech-to-English translator terminated, role replaced by AI translation
2026-02-28Daniel Vavra steps back from day-to-day development for Kingdom Come film
2025-02-04Kingdom Come: Deliverance II released
2019-02-13Koch Media acquires 100% of Warhorse for 42.8 million euros
2018-02-13Original Kingdom Come: Deliverance released
2011-07-25Warhorse Studios founded by Daniel Vavra and Martin Klima

Revision history

23 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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