Spectacular turn of events. Square Enix’s Western branch is bought by a publisher with an insatiable hunger for acquisitions. And no, it’s not Microsoft or Sony.
A dramatic step on this Monday morning. While Warner Bros. was reporting a possible takeover by Microsoft or Sony over the weekend, another big fish has sold part of its development division. In a press release issued on May 2nd, Square Enix announced that it has sold its western studios and their licenses for $300 million.
The Tomb Raider license acquired by Embracer Group
If rumors pointed to a Sony takeover, it wasn’t a big well-known publisher getting their hands on this beautiful world. It’s Embracer Group that wins the bet for a rather paltry sum, including Crystal Dynamics working on the new Tomb Raider, Eidos Montreal or Square Enix Montreal. This acquisition then affects western licenses, including Tomb Raider, Deus Ex, Thief, Legacy of Kain, Sleeping Dogs and around fifty other unmentioned licenses.
Operations are scheduled to be completed between July and September 2022. Embracer will then bring together more than 14,000 employees, including 10,000 developers, spread across 124 studios. “ Embracer believes that demand for quality content, particularly AAA single-player games, will increase over the decade.
Embracer is gaming’s best-kept secret: a massive, decentralized collection of entrepreneurs. And are thrilled to be a part of it today. It fits perfectly with our ambitions: to develop high quality games with great people in a sustainable way and to further develop our existing franchises in the best possible way. Embracer enables us to forge new partnerships across all mediums to maximize the potential of our franchises and fulfill our dream of creating exceptional entertainment.
Life is Strange and Just Cause will remain with Square Enix
Still, Square Enix jealously guards Just Cause, Life is Strange, or the recent Outriders. The Square Enix External Studios division and the indie games program Square Enix Collective also remain. With this surprise sale, the publisher seems to want to refocus on its Japanese brands and studios.
In view of the shareholders, Square Enix justifies this decision with an adjustment. Respond to ongoing changes in the global business environment by implementing more efficient resource allocation that improves business efficiency “It’s also preparing the groundwork for its new businesses with investments in AI, cloud and yes, blockchain and NFTs. What a dream.
