Embracer Group has been acquiring a number of studios as of late, but today announced the purchase of Square Enix’s western developers.
Embracer Group has been acquiring a lot of studios as of late, but today it has announced a rather groundbreaking acquisition of the form in 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 includes 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 entire operation is certainly rather inexpensive, especially compared to recent acquisitions, $ 300 million.
The press release includes 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 over 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 large, decentralized collection of entrepreneurs 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 sale in its own press release, noting 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 the corporate value of accelerating growth in the Company’s core businesses in the digital entertainment domain.
In addition, the Transaction enables the launch of new businesses moving forward with investments in fields including blockchain, AI, and the cloud. The move is based on a policy structure optimization of the company that sets the company ahead of 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, revise the current governance structure and associated reporting lines, and advance integrated group management with the goal of maximizing the worldwide revenue generated by future titles launched by the 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.