Square Enix has shared their reason for selling its Western studios stressing that it will benefit from this transaction with new investments.
The majority of the Western publishing division of Square Enix has been sold for $300 million to the Embracer Group. This not only includes the studios but also a lot of valuable IPs including Tomb Raider. There are cult classics like Legacy of the Kain and Deus Ex as well.
The official response by Square Enix was that they want to invest in new technology like Blockchain.
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.
Based on their comments, the company seems to be committed to improving its studio output as well as investing in technologies like Blockchain, AI, and the Cloud.
