The Embracer Group, a global mass of video game publishers that already includes Gearbox and THQ Nordic, announced tonight a deal to buy a number of historic studios and properties from Square Enix. Although the purchase is not final – it is just “a deal to get them” until they are all signed later in the year – the press release says that if approved it will be a $ 300 million deal. For $ 300 million, Embracer will have:
Crystal Dynamics Studios, Eidos Montreal and Square Enix Montreal (the latter of which will probably be renamed), numbering around 1100 employees worldwide. The “IP list” owned and / or operated by these studios, including Deus Ex, Tomb Raider, Thief, Legacy of Kain and “ongoing sales and operations of more than 50 studio back-catalog games”. Also of interest: “Crystal Dynamics is actively working on many AAA projects, including the next major Tomb Raider game that will offer storytelling and next-generation gaming experiences.”
Square Enix bought Eidos (and Crystal Dynamics with it) in 2009, and while initially overseeing a series of reboots of series such as Tomb Raider and Deus Ex, later games on these properties – along with approved efforts such as the Avengers and the Guardians of the Galaxy — has become something of a meme in recent years, as no matter how high their critics’ ratings were or how many copies they sold, Square Enix always said the games were “under-performing.” Perhaps knowing that the first question most people would ask after such an agreement would be “so what happens to these series?”, The Embracer press release says: The acquisition brings an exciting array of new installments from favorite franchises and IP prototypes, including a new Tomb Raider game. The acquisition is based on Embracer’s mission to create a leading global gaming and entertainment ecosystem. Embracer was particularly impressed by the rich portfolio of studios with authentic IPs, which house brands with proven global capabilities, such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are exciting opportunities for organic studio development to maximize their commercial opportunities. Something that is vague, but even more promising for Deus Ex fans than the complete silence and neglect of Square Enix in recent years. The market is expected to be completed in the second quarter of Embracer’s financial year 22/23 (July-September 2022). Note that Embracer spent $ 1.3 billion on Gearbox alone. Getting all of them, from experienced studios to favorite real estate with $ 1 billion less, seems like … theft. So why sell? The Square Enix press release states: The Transaction will help the Company to adapt to the changes taking place in the global business environment, establishing a more efficient allocation of resources, which will enhance corporate value by accelerating the development of the Company’s core business in the field of digital entertainment. In addition, the transaction allows new businesses to start investing in areas such as blockchain, artificial intelligence and the cloud. Imagine for a second you were transposed into the karmic driven world of Earl.
