Square Enix has sold off much of their Western studio output and IP catalog to Embracer Group in a $300 million deal.
While Microsoft and PlayStation continue to acquire the greatest names in game development, Embracer Group is now the latest video game company to join the 2022 acquisition list by acquiring studios and IP from Square Enix.
Square Enix has sold off their Western studio output and a huge portion of its IP catalog, in a fresh deal penned with Embracer Group for $300 million that will see the later acquire not only the Tomb Raider, Deus Ex, and Thief IP, but also a collection of studios including Eidos Montreal, Crystal Dynamics, and Square Enix Montreal.
Embracer Group acquires Tomb Raider IP and more amid $300 million deal
Embracer Group, the parent company behind Koch Media and THQ Nordic, brought Square Enix into their portfolio in a cash-only transaction.
While Square Enix has recently pleased fans of the Kingdom Hearts franchise with a new game announcement, the long-running company has, in the past, noted that installments in traditionally Western franchises had underperformed.
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It is expected that the acquisition between Embracer Group and Square Enix will conclude within the second quarter of FY20232. While Square Enix will be relinquishing a heavy portion of their back catalog, they have clarified that franchises such as Just Cause, Life Is Strange and Outriders will remain under their banner.
Speaking on the news of Embracer Group’s purchase, Square Enix reiterated their pursuit of blockchain technology in gaming: “The launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”
Square Enix American and Europe’s CEO, Phil Rogers, said that “Embracer is the best-kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today” in a press statement.
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“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.”
It remains to be seen whether the Marvel licensing deal, which saw the release of Marvel’s Avengers and Marvel’s Guardians of the Galaxy from Crystal Dynamics and Eidos Montreal respectively, will be affected by the deal.