Did Square sell Eidos?

Did Square Sell Eidos?

In a recent earnings call, Square Enix explained its decision to sell its Western studios, including Crystal Dynamics and Eidos, to Embracer Group for a mere $300 million. This move has left many gamers wondering: what’s behind this sudden sale? And what does it mean for the future of these beloved gaming franchises?

Why Did Square Sell Eidos?

According to analyst David Gibson, Square Enix’s reasoning behind the sale is that its Western studios, including Eidos, were cannibalizing sales from the rest of the group. In other words, the success of games like Deus Ex and Thief were drawing attention away from other Square Enix titles, potentially harming the company’s overall performance.

The Sale: A Fire Sale?

The sale price of $300 million may seem low for two well-established studios, but it’s important to note that this is not a unique situation. The gaming industry is notoriously cyclical, and Square Enix is likely looking to cut its losses and focus on other areas of the business.

Eidos: What’s Next?

Eidos Montreal, the studio behind recent Thief and Deus Ex games, has taken control of its own IP, including the Deus Ex and Thief franchises. This means that the studio will now be able to make decisions about the direction of these games without interference from Square Enix.

Crystal Dynamics: Tomb Raider’s New Home

Embracer Group’s acquisition of Crystal Dynamics and the Tomb Raider franchise is a significant move, as the studio has been responsible for some of the most successful Tomb Raider games in recent years. The future of the franchise remains uncertain, but fans can rest assured that the team behind the games will remain intact.

Revenue: A Glass Half Full

Eidos Interactive, which includes both Eidos Montreal and mobile outfit Square Enix Montreal, earned CAN $248m revenue in the last three years. While this may seem like a small amount, it’s worth noting that the company has been focusing on digital distribution and mobile gaming, which can be more lucrative than traditional console games.

Square Enix’s Dilemma

Square Enix’s decision to sell its Western studios is a clear indication that the company is struggling to find its footing in the gaming market. With a focus on digital distribution and mobile gaming, the company may be looking to shed its legacy console franchises to focus on more profitable areas.

The Future of Eidos

As Eidos Montreal takes control of its own IP, fans can expect to see new and innovative games from the studio. With the freedom to make decisions without interference from Square Enix, Eidos may be able to focus on creating the kind of games that fans love.

Conclusion

Square Enix’s decision to sell Eidos and Crystal Dynamics to Embracer Group may seem like a sudden and unexpected move, but it’s likely a strategic decision to cut its losses and focus on more profitable areas of the business. As Eidos Montreal takes control of its own IP, fans can rest assured that the studio will continue to create innovative and exciting games. Only time will tell what the future holds for these beloved gaming franchises.

Timeline of Events

• 2009: Square Enix acquires Eidos Interactive
• 2022: Embracer Group acquires Crystal Dynamics and the Tomb Raider franchise from Square Enix
• 2022: Eidos Montreal takes control of its own IP, including Deus Ex and Thief franchises

Key Players

• Square Enix: Japanese gaming company and parent company of Eidos Interactive
• Eidos Interactive: Western gaming studio and developer of Deus Ex and Thief franchises
• Eidos Montreal: Canadian gaming studio and developer of recent Deus Ex and Thief games
• Crystal Dynamics: American gaming studio and developer of Tomb Raider franchise
• Embracer Group: Swedish gaming company and owner of Crystal Dynamics and Tomb Raider franchise