In a move that is sure to shake up the gaming industry,
Unicron Embracer Group announced its intent to swallow more planets game studios. This time it’s a number of studios and properties under the ownership of Square Enix. Embracer Group (formerly THQ Nordic AB) is a parent company of businesses that develop and publish PC, console, mobile, and board games, and other related media.
Among the acquisitions are three major game development studios:
- Crystal Dynamics
- Square Enix Montréal
And along with those studios (and their 1,100 employees around the world), Embracer will acquire a catalogue of intellectual properties: Tomb Raider, Deus Ex, Thief, Legacy of Kain, and more than 50 back-catalogue games from Square Enix.
Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases.Embracer Group enters into an agreement to acquire Eidos, Crystal Dynamics, and Square Enix Montréal amongst other assets
The deal isn’t official yet, but right now it looks like Embracer will be acquiring all of the above for a cool $300M. That seems like a bargain after grabbing Gearbox for $1.3B last year.
So what’s Embracer Group going to do with these series?
The press release states, “The portfolio of IP consists of iconic franchises appreciated by critics and players alike. For example, two original IPs, Tomb Raider and Deus Ex, have sold AAA units of ~88M and ~12M, respectively. Embracer sees an opportunity to invest in these franchises, as well as the additional acquired IPs such as Legacy of Kain, Thief, and other original franchises.”
That is the most exciting news I’ve heard about Deus Ex and Legacy of Kain in ages. It’s no guarantee that we will see anything in the near future, but that statement is more than Square Enix has said about Deus Ex in years.
The transaction is expected to go down “during the second quarter of Embracer’s financial year 22/23 (July-September 2022).”
Why does Square want to sell off these studios and their incredible IP anyway?
According to the press release by Square Enix:
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.
“If there’s one thing I wish gaming companies would put more money into, it’s blockchain.” —no one ever
WHAT DO YOU THINK ABOUT SQUARE ENIX SELLING OFF SUCH VALUABLE IP? WHAT ARE YOUR THOUGHTS ON THE EMBRACER GROUP? DO YOU EVEN CARE? LET US KNOW IN THE COMMENTS BELOW!
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