The Japanese publisher’s reasoning for selling off (and at a surprisingly low price…) some of its studios is relatively unheard of…

The news is quite a solid start to the week. The Swedish Embracer Group, which has been expanding significantly in the last few years, has announced that it has bought Eidos and Crystal Dynamics from Square Enix, in addition to the Japanese publisher’s Montreal studio. All for a surprisingly low total of just $300 million, which is a long way behind Microsoft spending nearly $70 billion on Activision Blizzard, and it’s also a far cry from Sony’s spending ($3.6 billion) on Bungie.

The deal is expected to close in the next fiscal quarter (July to September). In the press release, Lars Wingefors, co-founder and CEO of Embracer, wrote, “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 demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing plans for how they can realize their ambitions and become a great part of Embracer.”

Square Enix’s CEO for the US and Europe, Phil Rogers, added, “Embracer is the best-kept secret in gaming: a massive, decentralized collection of entrepreneurs whom 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. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment.”

This transaction will bring the Legacy of Kain, Thief, Tomb Raider, and Deus Ex franchises, among others, to Embracer. The company will employ the most game developers in the US and be number two in Canada. But let’s look at Square Enix. What will happen to them? In addition to their Japanese studios, Square Enix External Studios and Square Enix Collective will remain with them. Just Cause, Outriders and Life is Strange will also stay with the publisher, explained in its announcement that it will use the revenue from sales “by moving forward with investments in fields including blockchain, artificial intelligence, and the cloud.”

So the publisher is moving to NFTs and blockchain. It is… somewhat unbelievable!

Source: WCCFTech, Gematsu