The central theses
- Square Enix has announced that it will sell several studios and IPs to focus on blockchain, AI and cloud gaming.
- Embracer Group, which made the purchase, reports that the sale is valued at $300 million and will close this fall.
- Square Enix announced blockchain plans in January.
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Square Enix said in a press release today that it is selling several of its IPs and game studios to focus on blockchain.
The sale amounts to 300 million US dollars
Square Enix is investing money in its coffers to develop new blockchain projects, according to a press release today.
Square Enix will sell three subsidiaries including Crystal Dynamics, Eidos-Montréal and Square Enix Montréal. More than 50 game features are also sold, including Tomb Raider, Deus Ex, Thief, and inheritance from Cain.
The properties are being acquired by Embracer Group, which reports The sale is valued at $300 million. Although the purchase agreement was closed today, the sale itself is expected to close between July and September.
Corresponding Square Enix, the money raised from the sale will enable it to “found new businesses by driving investments like blockchain, AI and the cloud. It also said the sale will allow it to improve the relationship between its Tokyo and overseas divisions with the goal of “…maximizing global revenue” from future game launches.
Square Enix will retain several of its most popular brands, including JCause outrider life is strange and final fantasy
Square Enix’s Blockchain Forays
Square Enix first announced its blockchain plans this January.
The company’s president, Yosuke Matsuda, called 2021 the “first year” for non-fungible tokens and said that the company has developed a medium-term strategy for blockchain and NFTs.
In April, Matsuda entered separate interview that details the company’s plans. In that interview, he suggested that blockchain technology could be used to incentivize the creation of user-generated content and “autonomous game content”.
Square Enix was already involved in blockchain prior to these announcements. In 2020, it created NFTs for its Million Arthur franchise. It also invested $2 million in Animoca Brands, the company behind blockchain game The Sandbox, that year.
It’s unclear how today’s sale will allow Square Enix to expand further into blockchain, but these previous developments give an idea of where the company’s focus lies.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.