**Arc Games Inc. is an American video game publisher specializing in free-to-play MMORPGs, AA titles, and indie games, having recently achieved independence through a management buyout backed by XD Inc.**[1][2][3][7] Founded in 2008 in Redwood Shores, California, as **Perfect World Entertainment**, it served as the North American subsidiary of China's Perfect World Beijing, focusing on English-language versions of Asian free-to-play online games like *Perfect World International* (2008) and *Star Trek Online* (2010).[1][7] The company expanded by publishing titles such as *Neverwinter* (2013), *Torchlight II* (2012), and *Forsaken World* (2011), blending digital distribution with retail.[1] Key milestones include its 2021 acquisition by **Embracer Group**, rebranding to Arc Games (tied to its game launcher), and a brief stint as Gearbox Publishing San Francisco after Embracer's 2022 purchase of Gearbox—though it reverted to Arc Games in March 2024 when Gearbox moved to Take-Two Interactive.[1][2][5] Under Embracer, it broadened beyond MMORPGs to AA hits like *Remnant: From the Ashes* (2019), *Torchlight III* (2020), and *Remnant 2* (2023), plus indies such as *Have a Nice Death* (2022) and *Fellowship*.[1][2] In late 2025, **Arc Games became fully independent** after Embracer divested it (alongside Cryptic Studios) to streamline cash flow, enabling a management buyout with XD Inc. support.[2][3][4] CEO Im hailed it as a "major new chapter," poised for ambitious 2026 releases with global developer collaborations.[2] Today, Arc Game