By Sam Nussey
TOKYO (Reuters) – Japanese game company Square Enix will reduce its developer unit in the West as it sells the studios behind the “Tomb Raider”, “Deux Ex” and “Thief” franchises to Sweden’s Embracer for $300 million. .
The sale announced on Monday is the latest in a wave of business in the video game industry. Includes Crystal Dynamics, Eidos-Montreal and Square Enix Montreal studios, affects 1,100 employees and is expected to be completed in the July-September quarter.
Square Enix, whose top franchises include “Final Fantasy” and “Dragon Quest,” said the proceeds will be used to invest in areas such as blockchain, artificial intelligence and the cloud.
The Japanese company said last year that it was reviewing its portfolio as it sought to adapt to changes in the industry, such as the focus on the “metaverse”.
Embracer, which has earned a reputation for acquisitions and currently has about $1.02 billion in cash, said the deal will give it a pipeline of more than 230 games, including 30 big-budget AAA titles.
“Embracer is gaming’s best kept secret: a massive, decentralized collection of entrepreneurs that we’re excited to be a part of today,” Square Enix America and Europe CEO Phil Rogers said in a statement.