Spectacular turn of events. The western branch of Square Enix is bought by a publisher with a voracious appetite for acquisitions. And no, it’s not Microsoft or Sony.
A dramatic move this Monday morning. While Warner Bros. made the news over the weekend being the subject of a potential takeover by Microsoft or Sony, another big fish has sold off part of its development arm. In a press release issued on May 2, Square Enix announces that it has sold its Western studios and their licenses for 300 million dollars.
The Tomb Raider license acquired by Embracer Group
If rumors suggested a takeover by Sony, it was not a big well-known publisher who got their hands on this beautiful world. It’s Embracer Group that wins the bet for a rather paltry sum which includes Crystal Dynamics, which is working on the new Tomb Raider, Eidos Montreal or Square Enix Montreal. This acquisition then concerns Western licenses, including Tomb Raider, Deus Ex, Thief, Legacy of Kain, Sleeping Dogs and around fifty other unmentioned licenses.
The operation should be finalized between July and September 2022. Embracer will then bring together more than 14,000 employees, including 10,000 developers, spread over 124 studios. “ Embracer believes there will be growing demand for high-quality content, especially AAA single-player games, over the decade. “Explains the company of Lars Wingefors in its press release. For his part, Phil Rogers, CEO of Square Enix America and Europe is enthusiastic about this acquisition.
Embracer is gaming’s best-kept secret: a massive, decentralized collection of entrepreneurs. And are thrilled to be a part today. It fits perfectly with our ambitions: to create high-quality games, with great people, in a sustainable way, and to evolve our existing franchises in the best possible way. Embracer allows us to forge new partnerships across all mediums to maximize the potential of our franchises and fulfill our dream of creating extraordinary entertainment.
Life is Strange and Just Cause are staying with Square Enix
Square Enix nevertheless jealously guards Just Cause, Life is Strange or the recent Outriders. The Square Enix External Studios department and the Square Enix Collective indie games program are also retained. With this surprising sale, the publisher seems to want to refocus on its Japanese brands and studios.
Faced with shareholders, Square Enix justifies this decision by an adaptation ” to ongoing changes in the global business environment by implementing a more efficient allocation of resources, which will improve business efficiency “. It also sets the stage for its new businesses, with investments in AI, Cloud and yes blockchain and NFTs. What a dream.