Crystal Dynamics, Eidos-Montreal, and more have been acquired by the Embracer Group for $300 million
Embracer now owns Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games
Published: 2nd May 2022 | Source: Embracer Group |
Square Enix has divested from many of its Western Studios
Square Enix has confirmed that they have sold Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal to the Embracer Group for $300 million. This move has divested Square Enix from many of its western studios, re-centring the company around its core Japanese studios.
Alongside these three studios, the Embracer Group has purchased a catalogue of IP from Square Enix, including the Tomb Raider, Deus Ex, Thief, Legacy of Kain IPs. Additionally, Embracer has also purchased 50 unnamed "back-catalogue games".
Square Enix has stated that this sale will allow the company to launch new businesses and move forward with "investments in fields including blockchain, AI, and the cloud." Square Enix has also expressed interest in "maximizing the worldwide revenue generated from future titles launched by the group’s studios in Japan and abroad."
Based on Square Enix's comments regarding its future, it looks like the company has sold the IP and studios that the company believes is not profitable enough. Recent releases from Crystal Dynamics, Eidos-Montréal have sold below Square Enix's expectations, with Marvel's Avengers, and Marvel's Guardians of the Galaxy being a prime examples of this.
With Square Enix discussing blockchain and profit maximisation, Square Enix appears to be moving in a direction that many gamers will not like. To say the least, Blockchain in games has been an unpopular concept, and in a sense it is a good thing that the Embracer Group's newly purchased IPs and studios will get to avoid this transition.
Square Enix has never been happy with how its western studios had performed financially. While their games have been popular, they have never met Square Enix's high expectations. It is undeniable that Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal have made great games, but that doesn't matter when your owner expects more profit. Let's hope that the Embracer Group will be a better fit for these studios and their IPs.
You can join the discussion on the Embracer Group acquiring Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal on the OC3D Forums.