Square Enix is giving up its intellectual properties Tomb Raider, Deus Ex, Thief, and Legacy of Kain so that it can focus better on the blockchain.
The Embracer Group, a Swedish video game and media holding company that owns Gearbox, Koch Media, Saber Interactive, and THQ Nordic, among others, announced today that it will be purchasing veteran studios from Square Enix, along with the IPs that those studios have been producing. The list includes Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, which collectively represent about more than a thousand employees. Gone with these studios are IPs like Deus Ex, Tomb Raider, Thief, and Legacy of Kain.
Of course, fans are obviously worried by this piece of news, as these are well-beloved franchises that have, arguably, been maligned by Square Enix and mismanaged over the past decade. Well, Embracer Group's press statement doesn't feel too reassuring, either, saying:
“The acquisition brings a compelling pipeline of new installments from beloved franchises and original IPs, including a new Tomb Raider game. The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.”
There are, apparently, plans to make new games out of at least two series, but nothing is assured for now. Speaking of things not yet final, these acquisitions are also not yet final. The “agreement to purchase” would eventually lead to The Embracer Group acquiring these studios for nothing more than about $300 million by September 2022.
So, why sell? Well, Square Enix was never fond of these IPs, anyway, as no matter how well-received, well-reviewed, and no matter how well games made by Crystal Dynamics (Rise of the Tomb Raider, Marvel's Avengers), Eidos Montreal (Marvel's Guardians of the Galaxy, Shadow of the Tomb Raider), and Square Enix Montreal (Hitman Go, Deus Ex Go, Lara Croft Go), Square Enix always considered the performance of these games to be poor and below expectations. So, it's actually a good thing for gamers who have been waiting for so long for the next Tomb Raider, Deus Ex, Thief, and Legacy of Kain games. At least under The Embracer Group, there is now better hope that we'll see more of these games in the future.
As for Square Enix, the reason why they're selling is that their President Yosuke Matsuda is so keen on getting into the Metaverse and NFT bandwagon. Starting the year off the wrong foot, Matsuda announced in January that Square Enix is going to be exploring the Metaverse and Blockchain technology. In spite of not being well-received by fans, Matsuda doubled down on the Metaverse and Blockchain egg basket earlier in April. Responding to questions about the acquisition, Square Enix said:
“The Transaction will assist the Company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain. In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”
They're selling high-performing, well-loved, well-received, and critically acclaimed video games so that they can invest more in Blockchain, the AI, and the Cloud. Wow. Just wow.
Meanwhile, Square Enix would like to reassure (somehow) their fans, by saying that they will continue publishing traditional video games like Life is Strange, Just Cause, and Outriders. It also doesn't seem like Square Enix will be giving up on their traditional IPs like Final Fantasy and Dragon Quest, although the company's growing interest in Metaverses and Blockchain Technology will likely mean these games will also be tarnished by blockchain technology sometime down the line. Whether or not this will pan out the way Square Enix wishes it to, we don't know yet. But a growing number of cases in Blockchain-based games have shown that NFT Games are pyramid schemes that benefit only those on top while preying on late-comers and the gullible.
While the company is still actively developing games like Final Fantasy XVI and Final Fantasy XIV, don't be surprised when the next Final Fantasy games or spin-offs would feature metaverse and blockchain technology, somehow. We've seen how willing Square Enix is in destroying their games in the name of money, such as in the case of Chocobo GP. We're sure we'd see more of this behavior, but now with the blockchain flavoring.
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