It is yet another piece of the puzzle to better understand the consolidation process of the gamaing industry. Swedish publisher Embracer Group has acquired Crystal Dynamics, Eidos-Montréal, Square Enix Montréal and a catalog of gaming assets that include Tomb Raider, Deus Ex, Legacy of Kain and more than 50 games from Japan’s Square Enix for $ 300 million. The news caught analysts and observers off guard because the name of the Japanese giant had circulated among the eligible candidates for an acquisition by Playstation. The choice to get rid of studios could be a way of making cash and at the same time becoming leaner towards the big players who have been raking up software houses since the beginning of the year.
Marvel’s losses and the Western question.
According to Niko Partners, in reality the problem was not so much to make oneself attractive but to get rid of unprofitable studios. Thief, Deus Ex Mankind Divided, Shadow of the Tomb Raider, Marvel’s Avengers and Guardians of the Galaxy are titles that have enjoyed some success among the public but have not commercially achieved the intended objectives. In Japan, Square Enix is achieving excellent results in terms of multiplayer, mobile and MMO games. MST Financial’s comment is also online, but points the finger at the flop of the Marvel series video games. According to the analyst, the losses of Marvel’s Avengers and Marvel’s Guardians of the Galaxy would have reached losses of 200 million dollars in two years. The choice would therefore seem to focus on the Japanese market which, although it has lost in value in the last decade, remains one of the richest in the world. Currently with 75 million players and a turnover of 22 billion dollars a year it is the third largest market globally.
About Embracer Group.
The Swedish group that owns, among others, Saber Interactive, Gearbox and THQ Nordic has paid 300 million cash for Square Enix studios and does not seem to want to stop. Its largest acquisitions in the past 12 months have exceeded $ 1 billion including video game maker Gearbox Software and board game maker Asmodee Games. At the same time as the announcement of the acquisition, they confirmed the start of development of the “next main title of Tomb Raider” and other “AAA” projects.