Square Enix Sells Deus Ex, Tomb Raider Studios to Fund Blockchain, AI Projects
Game publisher Square Enix is selling off the studios behind the Tomb Raider and Deus Ex franchises in an effort to streamline its business and fund new AI and blockchain investments.
The deal, announced today, is valued at $300 million. The news means that game studios Crystal Dynamics, Eidos-Montréal, and the mobile-focused Square Enix Montréal will be sold to a Swedish firm called Embracer Group, which recently acquired Gearbox Software, the developer behind the Borderlands franchise.
In addition, Embracer Group is acquiring intellectual property covering over 50 game titles, including the Tomb Raider, Deus Ex, Thief, and Legacy of Kain franchises.
Square Enix said it made the deal in a bid to more efficiently allocate resources and accelerate growth for its core business. "In addition, the transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud," the company added without elaborating.
Still, the deal isn't a great look for Square Enix, which acquired the game studios in 2009 with its purchase of Eidos Interactive for about $105.5 million. Since then, the Japanese game publisher has struggled to rake in enough sales through Crystal Dynamics and Eidos-Montréal, according to Daniel Ahmad, a video games analyst at Niko Partners.
“SE (Square Enix) Western Studios have underperformed over numerous titles,” Ahmad wrote in a tweet thread. “In layman's terms, they spent too much and got a low return.”
However, the PC games from the studios have generally been well-received, including Rise of the Tomb Raider and Deus Ex: Mankind Divided. Embracer Group, which was formerly known as THQ Nordic, celebrated the acquisition, noting it had acquired
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