The Embracer Group, a planet-eating mass of video game publishers that already includes Gearbox and THQ Nordicannounced tonight a deal to purchase a number of studios and properties from Square Enix.
Although the purchase isn’t final — this is just an “agreement to acquire her” until everything is signed later in the year — the announcement press release says the deal, if approved, is a $300 million deal will act. For the $300 million, Embracer will receive:
- The studios Crystal Dynamics, Eidos Montreal and Square Enix Montreal (the latter is expected to change its name) with around 1100 employees worldwide.
- The “Catalogue of IPs” owned and/or working on by these studios, including deus ex, Tomb Raider, Thief, legacy of Cain and “the continued sale and operation of the studios’ more than 50 back catalog games.” Also of interest: “Crystal Dynamics is actively working on several AAA projects, including the next mainline game, Tomb Raider, which will deliver next-gen storytelling and gameplay experiences.”
Square Enix bought Eidos (and with it Crystal Dynamics) in 2009 and initially oversaw it a number of well-received reboots of series like Tomb Raider and deus exlater games in these properties – along with licensed endeavors like The Avengers and Guardians of the Galaxy– her property became something of a meme in recent years, as no matter how high their rating scores ended up or how many copies they would sell, Square Enix would always say the games were “underperforming.”.
Perhaps knowing that the first question most people would have after a deal like this would be, “So what’s happening with these shows?” Embracer’s press release states:
The acquisition brings with it a compelling pipeline of new installments of popular franchises and original IPs, including a new one Tomb Raider Game. The acquisition builds on Embracer’s mission to create a leading independent global gaming and entertainment ecosystem. Embracer was particularly impressed with the studio’s rich portfolio of original IP, case brands with proven global potential such as Tomb Raider and deus ex, as well as demonstrate the ability to create AAA games with large and growing fan bases. There are compelling ways to grow studios organically to maximize their commercial opportunities.
Which is vague, but even more hopeful for fans of such a thing deus ex than the utter silence and neglect of Square Enix in recent years. The acquisition is “expected to close during Embracer’s second quarter of fiscal year 22/23 (July-September 2022).
Note that Embracer spent $1.3 billion on Gearbox alone. To get all thisfrom the veteran studios to the popular properties for $1 billion less, seems… like a steal.
So why sell? According to Square Enix’s own press release:
The transaction will help the company adapt to ongoing changes in the global business environment by establishing a more efficient allocation of resources that will enhance shareholder value by accelerating growth in the company’s core digital entertainment businesses. In addition, the transaction enables the creation of new companies by driving investments in areas such as blockchain, AI and cloud.
Imagine having to attach your sold resume Tomb Raider to at least partially fund some blockchain shit.
