Square Enix has announced that it will be selling all of its Western game studios and their associated intellectual property (IP) to the Embracer Group for $300 million.
Some of the studios included in the sale are Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, while the IPs include Deus Ex, Tomb Raider, and Thief.
SQUARE ENIX HOLDINGS CO., LTD. enters into an agreement with Embracer Group to acquire Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and IP.
Press Release: https://t.co/ooOYacp4PW pic.twitter.com/2PmQE967gk
— Square Enix (@SquareEnix) May 2, 2022
According to the Share Transfer Agreement set forward by Square Enix, the purpose of the sale is to “enhance corporate value by accelerating in the digital entertainment domain,” which includes “the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”
The focus on blockchain-based technologies is not a surprising development, as it has been an ongoing trend for companies to invest in the metaverse, like Epic Games and LEGO’s partnership to build a child-safe metaverse project.
Embracer is already a behemoth in the game publishing industry, as it owns 119 studios, including THQ Nordic, Deep Silver, and the recently acquired Gearbox Entertainment.
After the Square Enix acquisition is finalised in September, Embracer will have more than 124 internal studios and over 14,000 employees, 1,100 of which will have come from Square Enix’s Western studios.
Square Enix has also confirmed that its external studios will continue to publish franchises such as Just Cause, Outriders, and Life is Strange.
Crystal Dynamics’ development of the new Tomb Raider title in Unreal Engine 5 is still going ahead, and Embracer Group co-founder and CEO Lars Wingefors has acknowledged the studio’s “unique ability to deliver blockbuster hits decade after decade.”
Read: PlayStation confirms more acquisitions in the near future
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