Square Enix recently announced selling various overseas studios and IPs to Embracer Group AB. The reason behind this move seems to be related to the recent Marvel games developed by the company. They didn’t sell as well as Square Enix hoped and made the company lose over $200 million.
Yesterday, Square Enix entered into an agreement with Embracer Group for the acquisition of Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and IPs such as Tomb Raider, Deus Ex, Thief, and Legacy of Kain. The three subsidiaries of Square Enix concerned by this deal are based in North America. Crystal Dynamics’ headquarters are in Redwood City, California. Eidos-Montréal and Square Enix Montréal are both located in Canada.
Crystal Dynamics is the studio behind the 2020 action RPG Marvel’s Avengers. The game received mixed reviews, with players blaming its lack of content and technical issues. Square Enix tried to revive the game with various updates, but Marvel’s Avengers didn’t meet the expected success.
Eidos-Montréal recently developed Marvel’s Guardians of the Galaxy. If the game was praised for its humor and story, the combat gameplay felt more shallow and repetitive. Marvel’s Guardians of the Galaxy was not a complete failure and was even the 2nd best-selling boxed game in the UK in its launch release. But the game’s sales failed to meet Square Enix’s expectations. Yosuke Matsuda, Square Enix CEO, said that “despite strong reviews, the game’s sales on launch undershot our initial expectations.”
Square Enix is now announcing the sale of both these studios, alongside Square Enix Montréal, their subsidiary that specializes in mobile gaming. This studio developed Hitman Sniper: The Shadows, as well as Deus Ex Go, Hitman Go, and Lara Croft Go. Square Enix is now selling this studio alongside these game licenses.
