Square Enix Selling Off Its Western Studios to Embracer Group
In a surprising turn of events, Embracer Group entered an agreement to acquire Square Enix’s Western studios. This includes the likes of Eidos, Crystal Dynamics, and Square Enix Montreal. The announcement was made in a press release issued by Embracer on their official site. The acquisition will cost Embracer a total of $300 Million.
The company has also issued a press release, indicating the primary IPs that are to be divested. These franchises include Tomb Raider, Deus Ex, Thief, and Legacy of Kain. According to Square Enix, this deal will allow the company to handle its resources more efficiently within the global business environment. In turn, the company expects this decision to accelerate its growth and enhance its corporate value. The company also hopes to achieve better alignment between the overseas publishing division and the central organization in Tokyo.
Square Enix is also looking to expand into new businesses moving forward, with investments in the blockchain, AI, and Cloud sectors. Going forward, the company’s development studios will include its studios in Japan, Square Enix External Studios, and Square Enix Collective. Franchises such as Just Cause, Outriders, and Life is Strange will continue to function as part of the company’s overseas studios.
Square Enix seemed to have given up on franchises like Tomb Raider and Deus Ex, so this acquisition will allow Embracer to continue them in some shape and form. Regardless, $300 Million sounds like a pretty good deal for Embracer, considering the IPs they have acquired.
We hope that talented studios like Crystal Dynamics are given the creative freedom and budget to work on their future project and look forward to their output in the years to come. The studio is currently involved in the development of Perfect Dark alongside Xbox’s first-party studio The Initiative. There’s no information on how that collaboration will pan out post-acquisition, but it’ll likely remain unaffected.