Square Enix the Japanese entertainment conglomerate and video game company has become a hot topic for everyone since the company sold its 3 major studios including Crystal Dynamics, Eidos Montreal, and Square Enix Montreal. Yes! You read it correctly, all the three studios are now under Embracer Group and the deal closed at USD 300 Million. According to the reports, the company has taken this move for the acquisition.
Furthermore, reports also suggest that the IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain, and more are also part of the deal. It’s been reported that the company has lost USD 200 Million between Marvel Avengers and Guardians Of The Galaxy games. Nevertheless, that still didn’t make sense of selling out all the three studios and franchises, especially Tomb Raider and Deus Ex.
Despite the loss, Square Enix is having enough cash to invest in their future projects and which could have covered the losses.
SQUARE ENIX HOLDINGS CO., LTD. enters into an agreement with Embracer Group for the acquisition of Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and IP.
— Square Enix (@SquareEnix) May 2, 2022
“The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities,” as per the official statement.
The acquisition makes Embracer group the owner of more than 14,000 employees, 10,000 game developers, and 124 internal studios. The company confirmed that it has more than 230 games in the pipeline for this year.
Strange move, plan to invest more into blockchain etc, they dont need the money. Too hard to manage overseas projects? https://t.co/BEZNDm6jv2
— David Gibson (@gibbogame) May 2, 2022
“This acquisition will bring additional scale to Embracer’s current AAA segment, and Embracer will have one of the largest pipelines of PC/Console games content across the industry, across all genres. As Embracer’s pipeline matures, this will be a key driver for organic growth in net sales, operational EBIT, and free cash flow,” reads the official statement.