Embracer Group has announced its latest acquisition and it’s another big one. Reaching a deal with Square Enix for $300 million leads to them acquiring Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal.
Sharing the news in a press release, this acquisition also includes the intellectual property rights of several major franchises, including Tomb Raider, Deus Ex, Thief, Legacy of Kain and “more than 50 back-catalog games from Square Enix Holdings”. . That’s a surprisingly low amount considering what’s on offer here, although Square Enix has often expressed disappointment with Western game sales.
Embracer confirms that this agreement concerns 1,100 employees and that, if adopted, it should be concluded between July and September of this year. Speaking further, Lars Wingefors, co-founder and CEO of the group, said, “We are delighted to welcome these studios to the Embracer group. We recognize fantastic intellectual property, world-class creative talent and a track record of excellence that has been demonstrated time and time again over the past decades. It was a great pleasure to meet the management teams and discuss future plans on how they can achieve their ambitions and become a big part of Embracer.
Publishing its own statement, Square Enix revealed that this transaction “enables the launch of new businesses by moving forward with investments in areas such as blockchain, AI and cloud.”
Square Enix says the transaction (which was only $300 million) “allows the launch of new businesses by advancing with investments in areas such as blockchain, AI and cloud.” SE still has Just Cause, Outriders, Life is Strange More: https://t.co/acRNj9xYv5 pic.twitter.com/2ORwCoJItIMay 2, 2022
It’s unclear what those remaining 50 games are, though Embracer has confirmed that this deal includes the “next main Tomb Raider game.” Announced at Epic’s recent State of Unreal event, Crystal Dynamics revealed it was using Unreal Engine 5. In April, Tomb Raider franchise general manager Dallas Dickinson said the new engine “translates into storytelling experiences and next-level gameplay”.
Otherwise, Square Enix confirmed that it would not affect other overseas studios, stating that “going forward, the company’s development function will include its studios in Japan, Square Enix External Studios, and Square Enix Collective.” Thus, he will continue to publish Just Cause, Outriders and Life is Strange.
Who is the Embracer band?
We’ve all seen Microsoft and Sony’s acquisition war over the past few years, seeing big names like Bethesda and Bungie enter those respective teams. But Sweden-based Embracer Group has itself made several major acquisitions, including the acquisition of Borderlands developer Gearbox Entertainment last year.
This has grown in recent years and currently the company has several other big names under its belt: THQ Nordic, Koch Media/Deep Silver, Coffee Stain AB, Amplifier Game Invest, Saber Interactive, 3D Realms, Aspyr Media, etc much more. In total, there are over 100 internal studios within Embracer.
We can also expect big plans from Embracer over the next few years. Alongside heavy hitters like the Saints Row reboot and Star Wars: Knights of the Old Republic Remake, Deep Silver confirmed plans to overhaul Free Radical Design last May, announcing that a new TimeSplitters game is in development.