Embracer Group has been acquiring a lot of studios as of late, but today it had a rather groundbreaking acquisition to announce in the form of Square Enix’s main western developers.
The deal involves the acquisition of Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and their IP from Square Enix.
Said IP include classics like Tomb Raider, Deus Ex, Thief, Legacy of Kain, and many, many more. The deal will also bring over 50 back-catalog games under Embracer control.
The price of the whole operation is certainly apparently rather inexpensive, especially compared to recent acquisitions, $300 million.
The press release included a comment from Embracer Group CEO Lars Wingefors:
”We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer.”
We also hear from Phil Rogers, Square Enix America and Europe CEO:
”Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment.”
Square Enix also explained its rationale for the sale in its own press release, also mentioning that the company retains control of some overseas studios working on franchises like Just Cause, Outriders, and Life is Strange.
The Transaction 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.
In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud. 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.
Going forward, the Company’s development function will comprise its studios in Japan, Square Enix
External Studios, and Square Enix Collective. The Company’s overseas studios will continue to publish franchises such as JUST CAUSE, OUTRIDERS, and Life is Strange.