After selling off several studios, Square Enix is looking to expand the company with multiple acquisitions and opening brand new studios.
The last few years gamers have seen a lot of business take place in the gaming industry, with many famous studio acquisitions that have shaken the community. Microsoft has been spending heavily, culminating in its recent purchase of Activision Blizzard. Furthermore, Sony has also expanded its studio roster with the addition of Bungie, and Take-Two already owns Zynga, all due in 2022. Now, Japanese gaming powerhouse Square Enix after the sale. Several big-name studios are also looking to join the action to rebuild their developer roster, and they plan to buy more studios.
Square Enix’s intentions were made clear in its latest business year-end earnings report released to the public on May 13. A key takeaway from the report is the “business strategy progress.” medium-term” by Square Enix, where the company outlines a plan to achieve its “medium-term earnings goals”. One way the company says it will do this is by strengthening its “IP ecosystem” by “growing strong IP,” opening new game studios, and looking at potential acquisitions.
This follows Square Enix’s sale of Crystal Dynamics, Eidos-Montreal and Square Enix Montreal to Swedish video game company Embracer Group for $300 million. Along with those studios, Embracer Group has also acquired Tomb Raider, Deus Ex, Thief, and Legacy of Kain IPs, which include each IP’s associated games and DLC.
While some gamers might be surprised that Square Enix is looking to rebuild its studio roster quickly following its acquisition of Embracer, it fits with the giant’s desire to refresh and “reshape” your list of IPs. An easy way to refresh said portfolio is to acquire studios with existing IPs that Square Enix feels aligns with their vision along with growing the overall portfolio.
It’s worth noting that Square Enix sold the top three developers in North America instead of shutting down the aforementioned studios, a tactic that’s quite common among major game publishers but can leave a bad impression on the game. Western player. Electronic is a publisher that has built a reputation for being willing to shut down popular developers like Visceral Games and Pandemic Studios instead of selling them. After all, maybe Square Enix was really serious about not wanting to make games just to please Western tastes anymore.
Square’s studio acquisition plan is just one part of a larger outline of its plan to achieve its projected financial goals for the current financial year. Other plans listed include appointing a chief distribution officer to help “speed up decision-making” in order to strengthen Square Enix’s “release structure”. The company also plans to further promote blockchain entertainment and NFT efforts by the newly created Blockchain Entertainment Business Division.
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