Embracer Group has plucked Square Enix’s western division in a rather unexpected and ‘odd’ deal. This would secure Embracer Group some highly renowned IPs such as Tomb Raider, Deus Ex, Legacy of Kain, and Thief under their belt. Couple that with three talented studios, Crystal Dynamics, Eidos Montreal, Square Enix Montreal, and a total of 1,100 in workforce. Despite such an expansive portfolio, the bid that convinced Square Enix was “only” $300 million.
That’s still more money than one could count, but definitely a bargain considering the fact that Embracer recently acquired Gearbox for $1.3 billion. Although the price point might be surprising, Square Enix’s western division games haven’t had steady legs over the years. The developer was also reportedly on the lookout for being brought by someone for a while now.
Marvel’s Guardians of the Galaxy, developed by Eidos-Montréal, was generally well-received and won the best narrative award from the Video Games Awards this past year. However, it failed to meet Square Enix’s own expectations as the game sold less than they initially thought it would. We should also consider that their Marvel’s Avengers release, was largely dead on arrival. Other IPs have been either absent or non-existent.
For Embracer Group, this falls right in line with their current business undertakings as they’ve been on a hunt in terms of acquiring developers. They now have Borderlands developers Gearbox, THQ Nordic, Saber Interactive, Aspyr Media, and some other massive studios. Speaking about the current acquisition of Square Enix, they released a press release, which reads:
“Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases”
Square Enix also posted a press release shortly after. They claim this merger will “enable the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.” With severely underperforming IPs, Square Enix still seeks to integrate something blockchain-related into their games.
The deal hasn’t been finalized yet, but both parties have basically green-lit the agreement. It is expected to be completed in the second quarter of this year’s financial calendar, which falls between July and September. Elsewhere, Crystal Dynamics recently announced that there is a new Tomb Raider game in development. The game will be developed using Unreal Engine 5.
Comments