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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 journalist, and content writer at Gaming.net, where he covers game reviews, features, buying guides, recommendations, and new releases across PC and major console platforms.

His passion for gaming began while he was still a child after his uncle surprised him with a Brick Game packed with dozens of games. He later moved on to Contra and other NES classics, sparking a lifelong passion for video games.

Evans specializes in creating player-focused content that helps readers discover new games. He also enjoys tabletop games like Monopoly, hiking, and watching F1.