Embracer Group has adopted many new studios. The holding company has agreed to acquire three of Square Enix’s western studios, along with their franchises and backing catalogs. This is the developer of Tomb Raider Crystal Dynamics, Guardians of the Galaxy (and Deus Ex) Eidos Montreal and Square Enix Montreal (Hitman Go, Lara Croft Go).
The two publishers announced the $ 300 million transaction this morning, confirming that the deal includes more than 50 IP addresses. The acquisition adds about 1,100 new employees to Embracer in the eight locations of the three studios around the world.
“IP’s portfolio consists of iconic franchises valued by both critics and gamers. For example, two original IP addresses, Tomb Raider and Deus Ex, sold AAA units of ~ 88M and ~ 12M, respectively, “Embracer said in a press release.
Embracer sees an opportunity to invest in these franchises, as well as in additional acquired IP addresses such as Legacy of Kain, Thief and other original franchises. The acquisition also includes ongoing sales and operations of more than 50 game studio backs. “
In his own press release [PDF], Square Enix has confirmed that its western division will continue to publish Just Cause, Outriders and Life is Strange. Square Enix Collective will also continue with the External Studios brands.
Marvel’s Avengers, which Crystal Dynamics still maintains, was not mentioned in today’s announcement, so it will likely continue to be owned by Square Enix – at least as long as the license agreement with Disney is valid.
We know that Crystal Dynamics is working on a new Tomb Raider in Unreal Engine 5, along with supporting The Microsoft Initiative in developing a reboot of Perfect Dark. After the release of Guardians of the Galaxy, it is unclear what Eidos Montreal’s next project will be.
Square Enix has long had a tumultuous relationship with its Western studios. Although many of their games are selling relatively well by industry standards, the publisher regularly considers them financial disappointments. This was true for Tomb Raider, Deus Ex, Marvel’s Avengers and more recently the Guardians of the Galaxy.
This will at least ensure that the Japanese publisher does not complain about its Western games, which do not perform better in their revenue statements, although there are still Just Cause, Outriders and Life is Strange to fill this gap.
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