Square Enix ‘liquidated’ a series of popular game brands to invest in blockchain
On Monday (May 2), Square Enix said it will sell three of its game development studios: Eidos Interactive, Crystal Dynamics and Square Enix Montreal. These studios will be sold to Embracer Group, a company based in Sweden.
Embracer is one of Europe’s largest gaming groups after attracting a host of major studios including Gearbox, developer of the Borderlands shooter franchise, and Koch Media.
In particular, one of the “valued assets” sold in the deal worth $300 million is Tomb Raider, the iconic, cult video game brand of the Japanese game industry.
Embracer will also acquire the intellectual property of other series of games, including Deux Ex, Thief and Legacy of Kain. Square Enix expects the deal to be approved and finalized by the end of September.
This is a move that shows Square Enix’s ambition to focus its resources on investing in blockchain technology, AI and cloud computing, despite the challenging global business landscape.
The company’s announcement to increase blockchain technology development has caused a backlash on every social media. One user likened this action to “a person selling his house for a magic bean”.
Most gamers are often skeptical of NFT and see it as a method of collecting money that is harmful to the environment. While technology advocates say that NFT can open new doors, bringing new gaming experiences.
Square Enix, known for adventure games like Final Fantasy, Dragon Quest and Kingdom Hearts, acquired the rights to the Tomb Raider series after purchasing Eidos Interactive in 2009.
The deal price offered for Square Enix’s assets is surprisingly low, analysts say. However, before that, the company started looking for buyers to buy these properties.
Pier Harding – Rolls, game research specialist at Ampere Analysis, said that Square Enix is streamlining this business to restructure and focus on investment.
“The company has struggled to get consistent commercial success from those studios. Square Enix wants to build a leaner organization that delivers growth and more compelling returns for its shareholders.”
Square Enix said it will continue to publish movies from other gaming franchises including Just Cause, Outriders and Life is Strange.
Thai Hoang (according to CNBC)
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