Square Enix Explains Why It Just Sold Eidos, Crystal Dynamics


Today's breaking gaming news that Square Enix sold its internal Western developers (Eidos Montréal, Square Enix Montréal, and Crystal Dynamics) to the Embracer Group for $300 million was followed by a press release shared by the Japanese company, which includes financial details and the rationale behind the move.

The Japanese company said it aims to focus on blockchain, AI, and cloud from now on, just as mentioned last week by Square Enix president Yosuke Matsuda, who highlighted the importance of blockchain and play to earn to incentivize the creation of user-generated content. Square Enix will also continue publishing Western franchises such as Just Cause (Avalanche), Outriders (People Can Fly), and Life is Strange (Dontnod, Deck Nine).

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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. The move is based on the policy of business structure optimization that the Company set forth under the medium-term business strategy unveiled on May 13, 2021.

The Transaction will also provide an opportunity to better align our overseas publishing function with our organization in Tokyo, revisit the current governance structure and associated reporting lines, and advance integrated group management with the goal of maximizing the worldwide revenue generated from future titles launched by the group’s studios in Japan and abroad.

Going forward, the Company’s development function will comprise its studios in Japan, Square Enix External Studios, and Square Enix Collective. The Company’s overseas studios will continue to publish franchises such as JUST CAUSE, OUTRIDERS, and Life is Strange.

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