The decision by Square Enix to sell its Western studios (Crystal Dynamics, Eidos Montréal, and Square Enix Montréal) to the Embracer Group for the comparatively small amount of $300 million caught everyone off guard.
Shortly after that disclosure, the Japanese firm released a press release outlining the main reasons for the sale: to go forward with investments in areas like blockchain, AI, and the cloud while also launching new companies.
However, officials from Square Enix brought up the subject once more during the conference call as part of the quarterly report that was released today. This time, according to analysts David Gibson and Serkan Toto, the deal took place because Square Enix believed that games from Crystal Dynamics and Eidos Montréal would disrupt the company’s overall revenues.
Square Enix says they sold Crystal Dynamics and Eidos because they feared sales from these 2 studios would cannibalize sales of the rest of the company.
Who is so dumb to believe this complete and utter BS? https://t.co/DZUxZyipji
— Dr. Serkan Toto / Kantan Games Inc. (@serkantoto) August 5, 2022
Square Enix has been in a downfall for quite some time now. According to a statement released by the founder of Eidos Montreal Stephane D’Astous, he exclaimed that the studios were a “train wreck in slow motion“. D’Astous says that although Square Enix’s Japanese stakeholders bear some of the blame for the way the company handled its Western studios
The hope is that Eidos Montréal, Crystal Dynamics, and Square Enix Montreal will have a new start under Embracer, which typically allows its subsidiaries to operate autonomously.