Image: Square Enix
Embracer Group, an engrossing planet of video game publishers that already includes such as Gearbox and THQ Nordic, tonight announced a deal to buy a number of floor-to-ceiling studios and properties from Square Enix.
Although the purchase is not final – it’s just an “acquisition agreement” until everything is signed later in the year – a press release said that if approved, it would be a $ 300 million deal. For $ 300 million, Embracer will get:
- Crystal Dynamics, Eidos Montreal and Square Enix Montreal (the latter of which will probably be renamed), with around 1,100 employees worldwide.
- The “IP Address Catalog” owned and / or operated by these studios, including Deus Ex, Tomb Raider, Thief, Legacy of Kain and “the ongoing sales and operations of more than 50 games from the studio’s back catalog”. Also of interest: “Crystal Dynamics is actively working on several AAA projects, including the next major Tomb Raider game, which will provide the next generation of storytelling and gameplay experience.”
Square Enix bought Eidos (and Crystal Dynamics along with it) in 2009 and while initially watching a number of well-received reboots of series such as Tomb Raider and Deus Ex, later games on these properties – along with licensed efforts such as The Avengers and Guardians of the galaxy – has become something of a meme in recent years, as no matter how high their test scores ended up or how many copies they sold, Square Enix would always say the games were “underperformed.”
Perhaps knowing that the first question most people would have after a deal like this would be “and what’s going on with these series?”, An Embracer press release said:
The acquisition brings a fascinating set of new contributions from favorite franchises and original IP addresses, including a new Tomb Raider game. The acquisition is based on Embracer’s mission to create a leading independent global gaming and entertainment ecosystem. Embracer is particularly impressed by the rich portfolio of original IP studios, which house brands with proven global potential such as Tomb Raider and Deus Ex, and demonstrates the ability to create AAA games with large and growing fans. There are incredible opportunities for organic development of the studios in order to maximize their commercial opportunities.
Which is unclear, but still more encouraging for fans of something like Deus Ex than the complete silence and disregard for Square Enix in recent years. The purchase is “expected to be completed in the second quarter of the financial year of Embracer 22/23 (July-September 2022).
Keep in mind that Embracer spent $ 1.3 billion on Gearbox alone. To get it all, from experienced studios to favorite properties for $ 1 billion less seems … like theft.
So why sell? Square Enix’s own press release says:
The deal will help the Company adapt to changes in the global business environment by establishing a more efficient allocation of resources, which will increase corporate value by accelerating growth in the Company’s core business in the field of digital entertainment. In addition, the transaction allows new businesses to be launched, moving forward with investments in areas including blockchain, AI and the cloud.
Imagine having to put on your resume that you sold Tomb Raider to finance at least some of the blockchain nonsense.
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