Embracer Group buying Tomb Raider studio and more from Square Enix
The Embracer Group revealed that it’s buying Tomb Raider as well as a few other big video game franchises from Square Enix.
Earlier this month, the Sweden-based media holding giant announced that they have purchased three Western studios divisions of Square Enix, namely Eidos, Crystal Dynamics, and Square Enix Montreal. Along with the three divisions are the game franchises they develop, including Tomb Raider, Deus Ex, and Thief; as well as more than 50 back-catalog titles from the company’s library.
As announced in the company’s press release, the Embracer Group buying Tomb Raider and other Square Enix IPs, which will reach a whopping sum of USD 300 million if approved, will also include the acquisition of 1,100 employees across the three groups.
”We are thrilled to welcome these studios into the Embracer Group,” said Lars Wingefors, Co-founder and Group CEO of Embracer Group, in the press release. “We recognize the fantastic IP, world-class creative talent, and track record of excellence that have been demonstrated time and again over the past decades.”
According to reports, such a move by Square Enix might have been influenced by the games’ commercial underperformance despite the critical success it has brought forth. The sale to Embracer roots to their effort in bringing the best out of the titles they have developed. (Read: Two more Kingdom Hearts titles on the way)
”Embracer is the best-kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today,” Phil Rogers, CEO of Square Enix America and Europe CEO, said. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment,” he added.
Nevertheless, the Japan-based company stated that they were not completely leaving Western game development.
“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,” the report said.
Originally named Nordic Games Licensing AB, the Swedish company already has Borderlands developer Gearbox Software, Saber Interactive, THQ Nordic, Koch Media, Deep Silver, and fellow Swedish company Coffee Stain Studios under their name. They have also expanded their reach to other entertainment mediums such as comic books and board games, buying Dark Horse Comics just two months ago and French tabletop developer Asmodee in 2021.
With diverse subsidies, Embracer is set to be one of the largest game companies in the world with more than 14,000 employees, 10,000 game developers, and 124 internal studios when the deal with Square Enix, which is “expected to be completed during the second quarter of Embracer’s financial year 22/23″ (July-September 2022), closes.
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