We learnt today that Square Enix is in the process of selling its western studios which are Crystal Dynamics, Eidos Montreal, and Square Enix Montreal to the Embracer Group. Square Enix President and Representative Director, Yosuke Matsuda, told investors in a press release that the move has been made to help them “adapt 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.”
The sale will also allow the company to further invest in upcoming gaming technology such as blockchain, cloud gaming, and advancing video game AI. Mr. Matsuda also said that the move has also been made to help align its Tokyo organization with its overseas publishing along with revisiting “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.”
Once the acquisition with the Embracer Group is complete, it will leave Square Enix the following studios and developers; Square Enix External Studios, the Square Enix Collective and its Japan studios.The company also said that it has plans to continue publishing hit western video games franchises like Life is Strange, People Can Fly’s, Outriders, and Avalanche Studios, Just Cause.
This is a pretty roundabout way of saying “western studios didn’t meet our expectations, so we’re selling them”.
Anyways, I definitely feel this acquisition is beneficial to both sides. I’m confident the Embracer Group will know much better what to do with these studios.
Since I work for a developer owned by THQ Nordic (which is part of the Embracer Group), there’s even a teeny tiny chance I’d someday get to work on some of those IPs, though I don’t really quite see that happening.