Square Enix Sells Deus Ex, Tomb Raider Studios to Fund Blockchain, AI Projects

Game publisher Square Enix Kab sold the studio at the end of the Tomb Raider and Deus Ex franchises in an effort to speed up the business and fund new ones. AI and block investment.

At deal, which was announced today, is worth $ 300 million. The news means mobile-focused game studios Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal will be sold to a Swedish company called Embracer Group, which recently acquired Gearbox Software, the developer behind it. Borderlands franchise.

In addition, Embracer Group acquired intellectual property covering more than 50 game titles, including the Tomb Raider franchises, Deus Ex, Thief, and Legacy of Cloth.

Square Enix Kab said it made a deal in a bid to more efficiently allocate resources and accelerate growth for its core business. “In addition, the transaction allows for new business launches going forward with investments in fields including blockchain, AI, and cloud,” the company added without elaborating.

However, the deal didn’t look good for Square Enix, which acquired the game studio in 2009 by buying Eidos Interactive for $ 105.5 million. Since then, Japanese game publishers have struggled to get enough sales through Crystal Dynamics and Eidos-Montréal, according to Daniel Ahmad, video game analyst at Niko Partners.

“SE (Square Enix) Western Studios has underperformed over many titles,” Ahmad said write in the tweet thread. “In layman’s terms, they spend too much and make very little profits.”

However, the PC game from the studio has generally been well received, including Rise of the Tomb Raider and Deus Ex: Man Divided. Embracer Group, formerly known as THQ Nordic, celebrated the acquisition, saying it had acquired “two of the industry’s most renowned AAA studios in Crystal Dynamics and Eidos Montréal.”

“The acquisition is built on Embracer’s mission of creating its leading global gaming and entertainment ecosystem,” the Swedish firm said. “There is an exciting opportunity to grow the studio organically to maximize commercial opportunities.”

That’s good news for PC gamers. Crystal Dynamics has announced plans to create a new Tomb Raider game, this time using it Unreal Engine 5. “I can tell you the best is yet to come,” said Scot Amos, head of Crystal Dynamics, at a video call.

Square Enix, on the other hand, said it will continue to release games from its remaining overseas studios for titles such as Just Cause, Outriders, and Life is Strange.

The acquisition is scheduled to close between July and September. Once completed, Embracer Group will hire an additional 1,100 employees from three gaming studios.