Square Enix sold a group of developers and assets to Embracer Group for $300 million. In a press release from Embracer, Square Enix America and Europe CEO Phil Rogers said the following:
Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment.
A press release from Square Enix shed some more light on the business decision. Yes, it’s exactly what you think it is: buzzwords about year-over-year growth and blockchain.
The Transaction will assist the Company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain. In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud. The move is based on the policy of business structure optimization that the Company set forth under the medium-term business strategy unveiled on May 13, 2021.
This isn’t the first time Square Enix has shown they’re embracing blockchain or NFTs, hell or high water. Earlier this year, President Yosuke Matsuda double-downed on NFTs. He called 2022 to be the year of NFTs.
Square also confirms that development will occur in their Japan studios, Square Enix Eternal Studios, and Square Enix Collective. The press release also confirmed that the Just Cause, Outriders, and Life is Strange franchises are staying in-house. The company’s overseas studios will develop these games; Square will act as publisher.
Electronic Arts already backed down on NFTs and blockchain. Valve is banning anything any and all blockchain or NFT gaming from the Steam platform. Will Square eventually change its mind? We can only hope so.