Square Enix sells its western studios and hits such as Tomb Raider for $300m | Games

The Japanese gaming company behind Final Fantasy is promoting off three studios, together with the rights to hit franchises together with Tomb Raider, in a $300m (£240m) deal.

Tokyo-based Square Enix has bought US-headquartered Crystal Dynamics and Canada-based Eidos Montreal and Square Enix Montreal to the Nasdaq-listed Swedish gaming group Embracer.

The deal contains the mental property (IP) rights to video games such as Tomb Raider, which has bought greater than 88m models, Deus Ex, Thief and Legacy of Kain. It additionally contains 50 again catalogue video games and will add 1,100 employees to Embracer, taking its international headcount to greater than 14,000.

“We are thrilled to welcome these studios into the Embracer family,” mentioned Lars Wingefors, co-founder and group chief government at Embracer. “We recognise the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades.”

Square Enix additionally has a multi-year take care of Disney to make Marvel video games – up to now it has made solely two titles, Avengers and Guardians of the Galaxy – which is more likely to be a part of the deal however was not talked about within the announcement.

Embracer, which has a market worth of $7.2bn, has spent greater than $8bn making over 60 acquisitions since 2020. The largest was the €2.75bn (£2.3bn) acquisition of French board game company Asmodee Games in December.

“Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today,” mentioned Phil Rogers, chief government of Square Enix America and Europe. “It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever.”

The $300m price ticket displays “limited competition for acquisition of the assets, perhaps suggesting some post-pandemic softness in valuations for particular segments”, mentioned Piers Harding-Rolls, head of video games analysis at Ampere Analysis.

“Interest will be curtailed by the lack of live service expertise,” Harding-Rolls added, a reference to video games that provide steady, up to date play. Titles such as Tomb Raider are primarily single participant and high video games lately can require funding corresponding to massive finances film productions.

“In different timing and circumstances that could have been a different number but now we are where we are and I’m standing here, so I’m super pleased with that,” Wingefors told a briefing.

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