In May the trade was shocked to be taught that Square Enix had bought off three of its western improvement studios – Eidos Interactive, Crystal Dynamics, and Square Enix Montreal – to Sweden’s Embracer Group. What was shocking, too, was the very fact it let go of all that expertise and mental property – Legacy of Kain, Thief, Deus Ex, and the long-lasting Tomb Raider – for what appeared a paltry worth of simply $300 million.
But in an in-depth interview with Games Industry, the founding father of Eidos Montreal Stephane D’Astous hints at why Square Enix wished to unload these studios for a seeming pittance. It seems it has one thing to do with Sony’s longterm plans.
“If I read between the lines, Square Enix Japan was not as committed as we hoped initially,” D’Astous instructed Games Industry, commenting on the Japanese firm’s relationship with its western studios, and describing the funding wanted for such collection as Tomb Raider and Marvel’s Avengers.
“And there are rumours, obviously, that with all these activities of mergers and acquisitions, that Sony would really like to have Square Enix within their wheelhouse. I heard rumours that Sony said they’re really interested in Square Enix Tokyo, but not the rest. So, I think [Square Enix CEO Yosuke] Matsuda-san put it like a garage sale”.
While these are “rumours”, D’Astous does counsel this may very well be why the three studios, that are identified for creating triple-A titles, had been let go for $300 million. For comparability’s sake, Embracer acquired Gearbox in a deal price $1.3 billion. The Eidos Montreal founder says whereas Gearbox and Eidos have across the similar quantity of employees (a couple of 1,000), Eidos has “five times the IPs”, and asks rhetorically “so why four times less?” [in value compared to Gearbox].
The studio founder left Eidos Montreal in 2013, however in revealing feedback prompt that Square Enix and Eidos weren’t the perfect match. It appears Square Enix, who acquired Eidos in 2009, at all times had larger expectations than the British firm may ship. But the Japanese large is infamous for being disenchanted with video games gross sales, even when they promote hundreds of thousands of copies as within the case of the Tomb Raider reboot trilogy.
There are many extra particulars within the interview, but when Square Enix was getting ready itself to be acquired by Sony, then the sell-off may make extra sense on reflection. We’ll simply have to attend and see about that one.
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