Square Enix has become the talk of the town in the gaming industry due to their latest sale of their 3 major studios, Crystal Dynamics, Eidos Montreal and Square Enix Montreal. These studios along with their IPs were sold to the Embracer Group for the price of $300 Million and many feel that this move has been made to streamline the company and get it ready for an acquisition.
Amongst the IPs that were distributed along with the studios, consisted of Marvel games such as Marvel’s Avengers and Guardians of the Galaxy which have reportedly costed Square Enix a whopping $200 million. According to a statement by Senior Analyst at MST Financial, David Gibson, “Marvel – that’s the reason why Square sold its NA team for $300m. Because in a little under two years they lost $200m on two Marvel games. But it still looks like a low price given the optionality on probably 4 AAA titles coming through”.
Marvel – that’s the reason why Square sold its NA team for $300m. Because in a little under two years they lost $200m on two Marvel games. But it still looks like a low price given the optionality on probably 4 AAA titles coming through. #SquareEnix #Embracer
— David Gibson (@gibbogame) May 2, 2022
David Gibson also spoke about the purpose of this transaction of Square Enix which stated that their reason for the sale was investments in fields including blockchain, AI, and the cloud. He called this a ‘strange move’, as he feels that the studio does not need the money and are probably finding it ‘too hard to manage overseas projects’.
Strange move, plan to invest more into blockchain etc, they dont need the money. Too hard to manage overseas projects? https://t.co/BEZNDm6jv2
— David Gibson (@gibbogame) May 2, 2022
Well the reason is still unclear as to why this transaction and distribution of IPs has taken place, David Gibson feels that the Marvel games burned a hole in the developer’s pocket and Jeff Grub feels that the company is streamlining itself to get ready for acquisition. To know for sure, the people will have to be patient and wait for an official announcement from Square Enix to know more about the future of the company.
OK. I’ve said this a thousand times, but there’s always someone who is hearing it for the first time: We never really hear enough to report on acquisitions with any certainty. Sony acquiring Square was the big rumor. But I CANNOT confirm that. And I continue to not know. pic.twitter.com/5ZKJruszCE
— Jeff Grubb (@JeffGrubb) May 3, 2022
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest gaming News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
