The Japanese producer and publisher announced the sale of Western Studios, setting one of the goals of this bold move. Among many industry watchers, a total of $300 million in deals has been explicitly labeled a “steal,” but it turns out SE has much bigger plans and would rather expand into new market areas than focus on Western gaming.
The Embracer Group announced a major acquisition that literally astounded everyone. For some time now, there have been behind-the-scenes reports that Square Enix wants to get rid of Western studios, so the deal isn’t much of a surprise, but the $300 million figure caused quite a stir.
Square Enix has released a transaction statement in which Yosuke Matsuda (Corporate President) confirms this The purpose of sales is to adapt to the contemporary realities of the industry.
The transaction aims to help the company adapt to changes in the global business environment through a more efficient allocation of resources, which will increase the company’s values by accelerating the development of the company’s main areas of activity in the field of digital play. Furthermore it, The deal makes it possible to start new projects by investing in areas such as blockchain, artificial intelligence, and cloud. This move is based on the business structure improvement policy that the company identified as part of its medium-term business strategy announced on May 13, 2021.”
At the beginning of the year, the Japanese announced that they intend to definitely enter the NFT and blockchain market – the decision received heavy criticism from players, in contrast to the reaction of investors who welcomed the new business plan. We can suspect that the company ditched Western studies and intellectual property in order to focus attention and resources in other areas.
In addition, Square Enix announced that it will continue to do business with three Western brands: Just Cause (Avalanche Studios), Outriders (from Polish People Can Fly), and Life is Strange (developed by Dontnod Entertainment).
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