A week after selling its western studios, Square Enix says it will create or buy new ones

A week after selling its western studios, Square Enix says it will create or buy new ones

Square Enix has indicated that it intends to create and/or acquire new game studios, and in the same month confirmed that it has agreed to sell its largest western developers.

Swedish company Embracer announced last week that it had agreed to acquire a large portion of Square Enix’s western development arm for $300 million, including Crystal Dynamics, Eidos Montreal, Square Enix Montreal and a catalog of IPs, including Tomb Raider and Deus Ex.

In an official statement at the time, Square Enix said the deal would allow it to focus on investing in blockchain, AI and the cloud.

In its financial results released on Friday, the Final Fantasy publisher was able to further explain his reasons for the sell-off.

The sale would allow it to achieve sustained growth through “selecting and concentrating corporate resources”, better aligning its overseas publishing operations with its Tokyo headquarters, and focusing on new businesses such as blockchain, AI and the cloud.

The company said it intends to grow its digital entertainment portfolio in part by creating new IP, accelerating decision-making through integrated group management and by “boosting[ing] Game development skills through founding new studios, M&A etc.”

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While it might seem surprising that Square Enix is ​​looking to launch studios so soon after selling established developers, it’s likely that the company intends to head in a different direction that’s more closely aligned with its latest corporate goals.

In a statement released alongside the Embracer announcement last week, Square Enix said that “going forward, the company’s development function will include its studios in Japan, Square Enix External Studios and Square Enix Collective.”

A week after selling its western studios, Square Enix says it will create or buy new ones

It added, “The company’s overseas studios will continue to release franchises such as Just Cause, Outriders and Life is Strange.”

Square Enix’s president said last month the company’s Japanese studios shouldn’t try to make games specifically for Western players.

In an interview with Yahoo Japan, Yosuke Matsuda explains that while it’s important for Square Enix games to sell well around the world, it would be a mistake for Japanese developers to try to imitate the Western game style.