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Square Enix Set to Sell Off Three Western Studios and IP, Including Tomb Raider and Deus Ex to Embracer Group

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Square Enix has sold off three of its development studios and over 50 intellectual properties to Embracer Group for just $300 million.

Embracer announced the news in a press release, revealing that the deal will see the firm acquire three studios which are Crystal Dynamics, Eidos Montreal, and Square Enix Montreal. This deal also includes IP rights to numerous major properties, including Tomb Raider, Deus Ex, Thief, and Legacy of Kain. Additionally, the holding company will acquire “more than 50 back-catalog games from Square Enix Holdings.”  

The deal affects approximately 1100 employees in total and is expected to go through in September. 

Crystal Dynamics is working on a new Tomb Raider, built on Unreal Engine 5. Eidos-Montréal recently released Marvel’s Guardians of the Galaxy, which was unexpectedly good. Square Enix Montréal has created some popular smartphone games including Hitman Go, Lara Croft Go, and Deus Ex Go. 

Embracer stated in a press release that it sees a potential to invest in the properties, as well as other acquired IPs such as Legacy of Kain, Thief, and other original franchises. 

The agreement excludes titles published by Square Enix from outside developers, such as Life is Strange, Just Cause, and Outriders.

The $300 million price tag for the acquisition has raised some eyebrows in light of recent high-profile sales of video gaming companies. Sony purchased Bungie and the Destiny series for $3.6 billion, while Embracer acquired Borderlands creator Gearbox for up to $1.3 billion.

According to Square Enix the sale to Embracer, “enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”

More About Embracer Group

Embracer Group was formerly Nordic Games before acquiring numerous THQ assets. The publisher rebranded itself as THQ Nordic AB after it went bankrupt. It relaunched as Embracer Group in 2019 after purchasing Koch Media, Deep Silver, Coffee Stain and a few more companies. Since then, the company has acquired several other companies including Saber Interactive, Gearbox, Aspyr Media, 3D Realms, Ghost Ship Games, Slipgate Ironworks, Perfect World, Beamdog, and Dark Horse Media.

What’s your take? What do you think of the deal between Square Enix and Embracer Group? Let us know over on our socials here or down in the comments below.

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Evans Karanja is a video game reviewer and features writer at Gaming.net, covering game reviews, platform recommendations, and new releases across all major consoles and PC. He has played games since childhood starting with Contra and writes exclusively from first-hand experience, playing every title he covers before recommending it.

He specialises in story-driven and single-player games, indie titles, and platform-specific guides across Game Pass, PS Plus, and Nintendo Switch Online. When not writing, find him spectating the markets, playing his favorite titles, hiking or watching F1.