Square Enix has confirmed that it will buy or create new studios under its umbrella just one week after it sold its biggest Western development studios. Square Enix sold its Western developers to Swedish company Embracer for $300 million in order to invest in blockchain technology and AI.
The main development houses sold to Embracer include Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, giving Embracer ownership of IPs such as Tomb Raider and Deus Ex. Square Enix president Yosuke Matsuda also stated that it shouldn’t be concerned with making games for Western audiences.
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Now Square Enix has further explained their reasoning behind selling its IPs and wanting to establish new studios under the Square Enix umbrella. Square Enix stated that the sales would allow the company to sustain growth through “selection and concentration of company resources”, better align its overseas publishing with Tokyo HQ, as well as focus on blockchain, AI, and the cloud.
Square Enix, which recently sold off three studios, hopes to establish some new studios pic.twitter.com/DoeIC0NZtX
— Stephen Totilo (@stephentotilo) May 13, 2022
Further, the company said that it plans to overhaul its Digital Entertainment profile through various means, including creating new IPs, streamlined group management, and “boosting game development capabilities by establishing new studios, M&A, etc”.
While surprising that Square Enix intends to create new studios or purchase them so soon after selling three major development studios, it does sound like the new studios they intend to purchase/create will be more aligned with their recent statements and vision.
Square Enix also stated, alongside the announcement from Embracer regarding its agreement with the Japanese publisher, that “going forward, the company’s development function will comprise its studios in Japan, Square Enix External Studios, and Square Enix Collective”. Square Enix will retain Just Cause, Outriders, and Life is Strange IPs.
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