By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Gaming Discussion - Embracer group acquires Square Enix Western studios

Ryuu96 said:
gtotheunit91 said:

I still can't believe this deal happened. Embracer can make their money back on this deal so easily. If Embracer has a single game sell 10 million copies at $60 a piece, they've literally doubled the amount they spent on all of Square's western divisions. That's how little Square valued it.

Square will start trashing all of their IP's. I'm worried for upcoming Square games that will have no business having NFT's, but will.

Speaking of.

SEK 500m = $50m.

300 Million....

If they sold some back games on the Switch, where I doubt many of them are (Does Switch have any Deus or Tomb Raider games?) digitally...that could be about 40 a pop, maybe more without marketing. They'd just need to sell 750 K full priced digital 60 dollar games on the Switch E-shop to make that back. 

Not sure how much it would cost to port them over, but if you want to earn 300 M on them, that isn't a terrible direction. 



The Democratic Nintendo fan....is that a paradox? I'm fond of one of the more conservative companies in the industry, but I vote Liberally and view myself that way 90% of the time?

Around the Network
hinch said:
gtotheunit91 said:

Seeing one of the biggest reasons Square sold their western division was to further invest into blockchain gaming, makes me worry that Square is going to start losing even more players if they start infecting their core franchises like FF and Kingdom Hearts with stuff like this. 

If I see FFVII Remake Part 2 or Kingdom Heart IV has NFT's, I'm out. 

and @haxxiy

SE explains the reasoning for the selling here..

https://www.hd.square-enix.com/eng/news/pdf/20220502%20A_Press%20Release_fin.pdf


"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. The move is based on the policy of business structure optimization that the Company set forth under the medium-term business strategy unveiled on May 13, 2021.

The Transaction will also provide an opportunity to better align our overseas publishing function with our organization in Tokyo, revisit the current governance structure and associated reporting lines, and advance integrated group management with the goal of maximizing the worldwide revenue generated from future titles launched by the group's studios in Japan and abroad.

Going forward, the Company's development function will comprise its studios in Japan, Square Enix External Studios, and Square Enix Collective. The Company's overseas studios will continue to publish franchises such as JUST CAUSE, OUTRIDERS, and Life is Strange."

In short they'll invest into blockchain AND double down on their more successful parts of the business, which definitely includes Final Fantasy, Kingdom Hearts etc.

They are basically trimming off their not much profitable western output, while testing the waters with blockchain and NFT. Why they would suddenly stop making quality games that give them revenue? :s

I have no doubt they'll still make quality games. Square isn't losing their creative talent. It's what they could be adding to those quality games to get even more revenue out of them that concerns me. With Square's CEO saying the dumbest sh*t lately when it comes to how he views gaming in general should be enjoyed, makes me worried about how far they'll try to push it. 

Last edited by G2ThaUNiT - on 02 May 2022

At least now they're with an owner that might actually put some of their games on Switch.

I'm no fan of the consolidation of the world's devs under a handful of megacorps, but frankly I'd rather them be with the Embracer Group than Square Enix, or under other potential buyers like Tencent, and I'm glad Microsoft or Sony didn't get them.

Last edited by curl-6 - on 02 May 2022

These studios are better off with Embracer Group than SE. At least a new Dues Ex and Tomb Raider game will likely be made. Square was terrible with managing their western division and their Japanese division isn't looking too hot either, especially with their future focus on Blockchain and other forms of monetization.



twintail said:
curl-6 said:

At least now they're with an owner that might actually put some of their games on Switch.

What makes you think Embracer is going to embrace Switch more than SE, a studio that has made Switch exclusive games?

Square's Switch stuff has all been from their Japan studios which they still have.

None of their Western stuff has come to Switch despite many of them being perfectly viable to port, so Embracer can't do any worse than Square.

Embracer seems to support the Switch fairly well; since they purchased Saber Interactive in February of 2020 the company has undertaken multiple Switch projects such as World War Z, the Crysis Remaster trilogy, Snowrunner, plus Kingdom Come Deliverance on the way.

They've also brought many of their THQ Nordic games to Switch like Darksiders 1-3, Destroy All Humans, next month Wreckfest, etc.

Last edited by curl-6 - on 03 May 2022

Around the Network

This deal certainly puts all others going around to shame. 3 studios and all those tried and tested IPs for only £300 mil. Hope Embracer give the studios some great freedom to make some great games.



Hmm, pie.

RolStoppable said:
curl-6 said:

At least now they're with an owner that might actually put some of their games on Switch.

I'm no fan of the consolidation of the world's devs under a handful of megacorps, but frankly I'd rather them be with the Embracer Group than Square Enix, or under other potential buyers like Tencent, and I'm glad Microsoft or Sony didn't get them.

Exactly right, curl. Embracer isn't a company that will discriminate development for a Nintendo console, rather they'll explore all options to put back catalogue games on Switch to make the most of their investment. For example, we could see the entirety of the most recent Tomb Raider trilogy on Switch for fair prices and without the cloud within the next two years.

Yeah looking at their catalog, few have supported the Switch as well as them. It's quite refreshing. They own Saber too so they even have their very own expert porting house.



The Fury said:

This deal certainly puts all others going around to shame. 3 studios and all those tried and tested IPs for only £300 mil. Hope Embracer give the studios some great freedom to make some great games.

Respectively the IP's aren't that much a big deal apart from Tomb Raider. And even then, that's not that much of a money spinner nowadays all considering its name and legacy. The trilogy sold 38M combined with a large chunk of that front loaded. Neither CD or Eidos and their games haven't made that much money in the last several years. In fact, they lost a bunch on Marvels games. CD has only really worked on TR (apart from LoK) until then and the series kinda died off when they were sold to SE. Got revived with the re imaging only to flounder again. Stuff like Legacy of Kain and Deus Ex aren't really relevant today - recent Deus Ex games selling 12M copies combined.

Activision Blizzard and Bungie's games on the other hand are very successful businesses, bring in revenue and help MS/Sony with bolstering their services/ecosystems.

There's must've been a bidding war and somehow Embracer managed to get them for 300M - which is what TR is probably worth. Maybe if MS wasn't tied in with ABK deal, they would have been in there with a considerably higher bid.



PotentHerbs said:
Machiavellian said:

You really do not know.  None of us know until each company gets approval.  We are on the outside looking in and have no real clue what is going on and the discussions, meetings and what not.  Just think of it this way, until you get things signed, its best not to go into anything believing it will just work.  Even still 3Bn is a tidy sum and Sony probably have a lot of work between now and when the sale is complete before doing anything else.

While that is true, there aren't reports from Bloomberg or Jason Schreier, about the Bungie deal being in danger of falling apart.

IIRC, Jason Schreier brought up the challenges of regulatory approval shortly after the Activision buyout was announced. We also didn't have any senators talk about Sony/Bungie with the same scrutiny as Microsoft/Activision Blizzard.

Which is weird, given that MS+Acti/Blizz has still a smaller market share than Sony, so every acquisition Sony makes is actually more important for establishing a monopoly than what MS does.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]

haxxiy said:

Only $300 million, what the hell? Embracer keeps making huge strides with sidelined IPs while Square Enix is seemingly run by idiots.

To be fair: We already knew for years that SE is run by morons.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]