Square Enix has shared some of its reasoning behind the decision to sell Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal to Embracer Group, saying the transaction will allow the company to invest more in the blockchain, AI, and the cloud.
Square Enix revealed the purpose of the transaction in its execution of share transfer agreement with change to subsidiaries document, saying it will assist the company in "adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain."
"In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud," Square Enix said.
This news follow Square Enix president Yosuke Matsuda's New Year's Day 2022 letter that was centered on the company's growing focus on NFTs, blockchain games, and the metaverse. Matsuda also reiterated his interest in blockchain games in April 2022.
The transaction, which will give Embracer Group access to such IP as Tomb Raider, Deus Ex, Legacy of Kain, Thief, and more, will "also provide an opportunity to better align our overseas publishing function with our organization in Tokyo."
Moving forward, Square Enix'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 Embracer Group and Square Enix deal is expected to close during Q2 of Embracer's financial year 2022/2023. The two companies also agreed on a purchase price of $300 million.
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