Square Enix has announced it’s signed a deal to sell off both Crystal Dynamics and Eidos to Embracer Group, as well as their associated IP. Because after years of mismanaging and scapegoating some of its western developers, it sounds like Square finally wants to dump its money into things other than their widely beloved games.
The press release Square Enix released on the situation says the sale will be to the tune of $300 million, and “will assist the Company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain.” Those digital entertainment domains they’re talking about include: ” blockchain, AI, and the cloud.” Great.
All of this is apparently because of an internal shift within Square Enix to align the western and eastern branches of the company, something it will be talking about in greater detail later this month.
“The move is based on the policy of business structure optimization that the Company set forth under the medium-term business strategy unveiled on May 13, 2021. The Transaction will also provide an opportunity to better align our overseas publishing function with our organization in Tokyo, revisit the current governance structure and associated reporting lines, and advance integrated group management with the goal of maximizing the worldwide revenue generated from future titles launched by the group’s studios in Japan and abroad.”
While Square Enix will no longer have its hands in Tomb Raider, Deus Ex, or Thief, the company states its western branch will still continue to put out games in the Just Cause, Outriders, and Life is Strange series. Part of me is quick to say “good for them” to the studios for finally getting out from under Square’s insatiable heel, but then I also recognize that shifts like this are often accompanied by changes at affected companies that can lead to layoffs. So hopefully the transfer of ownership won’t rock the boat too much.
Crystal Dynamics just announced it was adding a new Tomb Raider game to its growing list of projects, while Eidos Montreal just released Guardians of the Galaxy at the end of last year.