Game

Square Enix sells Crystal Dynamics, Eidos-Montréal, etc., including IP Tomb Raider, to Embracer Group

Embracer Corporation has entered into an agreement to purchase Crystal Dynamics, Eidos-Montréal and Square Enix Montréal from Square Enix along with a portfolio of intellectual property that includes Tomb Raider, Deus Ex, Thief and more than 50 others.

Embracer Group is paying $300 million for these studios and related IPs, and it’s doing it on a “cash and debt-free basis, to be paid in full at closing,” according to the company. company. In total, this acquisition will result in approximately 1100 employees from these three studios, in eight locations around the world, becoming Embracer Group employees. The acquisition is expected to close in the second year of Embracer’s fiscal 2022-23, or in other words, sometime between July and September of this year.

“We are delighted to welcome these studios to the Embracer Group,” wrote Embracer Group co-founder and group CEO Lars Wingefors in a statement. release. “We recognize brilliant intellect, world-class creative talent and proven track record of excellence over the decades. It was a pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and be a great part of Embracer. ”

Square Enix US and Europe CEO Phil Rogers writes in the release that Embracer is the best kept secret in the game in that it’s “a huge, decentralized collection of businesses.” whom we are delighted to be a part of today.” He calls Embracer Group the perfect fit for Square Enix’s US and European ambitions, which is to “create high-quality games, with great people, sustainably, and grow franchises.” our existing commercials to their best version.”

Since Embracer is buying not only Crystal Dynamics but also the Tomb Raider IP, it looks like the next Tomb Raider game, announced just a few weeks ago as a game to be fully developed in Unreal Engine 5, will be an Embracer header. On why Square Enix decided to sell these studios in the first place, including the studios behind Marvel’s Avengers and Marvel’s Guardians of the GalaxySquare Enix cites “adapting to the changes taking place in the global business environment” and the rise of blockchain technology, cloud gaming, artificial intelligence, and its own investments in each. area.

“The transaction will assist the company in adapting to the changes taking place in the global business environment by establishing more efficient resource allocation, which will enhance business value by accelerating the growth in the company’s core businesses in digital entertainment,” wrote Square Enix of its own. release. “Additionally, this transaction enables new business to be launched by continuing to invest in areas such as blockchain, AI, and the cloud.”

Reading a bit between the lines, Square Enix made it clear that they are sometimes unimpressed with their Western studio output, calling Marvel’s Avengers developed by Crystal Dynamcis a disappointment back in November and said that Eidos-Montréal’s Guardians of the Galaxy underscore its early expectations despite being strongly rated.

Going forward, Square Enix said its studios in Japan, studios outside of Square Enix, and Square Enix Collective will continue to produce games, and the company will continue to “publish franchises like Just Cause.” , Outriders and Life is Strange.”

After this transaction closes later this year, Embracer Group says the US will be the number one country in terms of game developers, with Canada in second place.

“In total, following the pending closure, Embracer will have more than 14,000 employees, 10,000 engaged game developers, and 124 in-house studios,” the statement read. Embracer’s upcoming content channel includes over 230 games with over 30 AAA games. This acquisition will bring additional scale to Embracer’s existing AAA segment, and Embracer will feature one of the largest channels of PC/Console gaming content in the industry, across all genres. ”

The company said it believes there will be growing demand for “high-quality content, including AAA single-player games,” over the next decade, and this transaction will help them meet that demand. .

Embracer Group’s acquisition combined with a host of other purchases has largely defined gaming in 2022 so far. It started with Take-Two Interactive, the parent company behind the Grand Theft Auto series, announcing back in January that it acquired mobile giant Zynga for almost 13 billion dollars. Then, a week later, Microsoft announces that it is acquiring Activision Blizzardthe company behind Overwatch and Call of Duty, for a whopping $68.7 billion, and then two weeks later, Sony reveals they are buying Bungie for $3.6 billion. A few weeks later, Sony also announced it acquired Jade Raymond’s new studio, Haven Studios.

Despite the surge in acquisitions that took place this year, the Embracer Group has been increasing its number of studios over the years. Eg, it acquired the studio Saber Interactive during World War Z back in 2020 and then in 2021, Embracer Corporation acquires Perfect World Entertainment and Dark Horse Media.


Do you think this is a good deal for Embracer Group? Let us know in the comments below!

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