The recent resale of the Western branch of Square Enix would actually be the first step in a takeover agreement with Sony PlayStation.
Last May, the famous video game publisher Square Enix separated from its European branch with flagship licenses such as tomb Raider Where Deus Ex. It was Embracer Group which, for 300 million euros, got its hands on the Crystal Dynamics, Eidos-Montreal and Square Enix Montreal studios. If we thought that Square Enix’s objective was to refocus on its Japanese studios with much more powerful licenses (Final Fantasy Where DragonQuest), it could be that the intention is quite different.
In an interview with the GamesIndustry.biz site, Stéphane D’Astous, founder and former boss of Eidos, confides in this transaction. For him, as for other players in the sector, the agreement with Embracer Group is not trivial and is part of a buyout plan: “If I read between the lines, Square Enix Japan was not as engaged as we originally hoped. And there are rumors, of course, that with all this M&A activity, Sony would really like to have Square Enix in its fold. I heard that Sony was interested in Square Enix Tokyo, but not the others. So I think Square Enix CEO Yosuke Matsuda-san held some kind of garage sale.”
A completely plausible scenario, because if Square Enix games are already affiliated with Sony through the various exclusivities enjoyed by PlayStation (Final Fantasy VII Rebirth and Final Fantasy XVI will be released only on PS5, among others), Sony does not hide its desire to strengthen itself by offering itself large studios with successful licenses. Boxes that Square Enix ticks.
A ridiculous price
Another point suggests this potential takeover: the insignificant amount paid by Embracer Group. Because unlike the latest studio takeovers that have made the news, we are talking here in millions and not in billions. When Microsoft seizes Activision Blizzard, it is against a check for 69 billion dollars. In this market, 300 million seems like a ridiculous amount. And yet, the three Western studios of Square Enix are not in their infancy, quite the contrary.
By way of comparison, Embracer Group had acquired the American studio Gearbox Software (Borderlands) for $1.3 billion. A misunderstanding for Stéphane D’Astous: “Gearbox has around 1,000 employees. Eidos has about 1,000. They basically have Borderlands and others, and Eidos has five times as many licenses. So why four times less? I guess there weren’t a lot of key people interested. And that shows the value of Eidos’ potential, unfortunately.” This rapid and almost sold-out resale suggests that Square Enix was trying to get rid of the weight represented by its Western branch in order to better manage discussions with Sony.
If studio takeovers are going well and multiplying, Japan remains a special case. Due to a culture and a market very different from Western markets, this type of operation remains difficult. It therefore seems logical that it is a Japanese company that positions itself on Japanese studios. To be continued.