Square Enix Reportedly Lost $200 Million on Avengers and Guardians of the Galaxy - News
by William D'Angelo , posted on 03 May 2022 / 3,823 Views
Square Enix this week sold its Western studios - Crystal Dynamics, Eidos Montreal, and Square Enix Montreal - for $300 million to Embracer Group. The sale includes over 50 IPs like Tomb Raider, Deus Ex, Thief, Legacy of Kain, and many more.
$300 million for those studios and IPs compared to other recent acquisitions seems like a a steal for Embracer Group, however, it appears this could be due to the losses Square Enix incurred with some recent releases.
Industry analyst David Gibson via Twitter reports that Square Enix lost $200 million on the two Marvel games - Marvel’s Avengers and Marvel’s Guardians of the Galaxy.
Marvel - that’s the reason why Square sold its NA team for $300m," said Gibson. "Because in a little under two years they lost $200m on two Marvel games. But it still looks like a low price given the optionality on probably 4 AAA titles coming through."
Marvel - that’s the reason why Square sold its NA team for $300m. Because in a little under two years they lost $200m on two Marvel games. But it still looks like a low price given the optionality on probably 4 AAA titles coming through. #SquareEnix #Embracer
— David Gibson (@gibbogame) May 2, 2022
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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When I heard an Avengers game was in development by the studio that made the first 2 games of the Tomb Raider reboot trilogy, I was ecstatic! I was expecting an Action-Adventure superhero epic the likes of Spider-Man (2018) or the Batman Arkham Trilogy and with it being the Avengers, I wouldn't be surprised if they added co-op. Instead, we got a run of the mill GaaS with super little content that added in a weird Borderlands/Destiny like loot system and prioritized the monetization system with mtx and battle passes.
Then Square admits that CD wasn't the right studio for this type of game after the game flopped. No crap Sherlock. This insane disappointment then seeped into Guardians of the Galaxy which was nothing like the Avengers game in any way and it was AWESOME! But even I had doubts when it was first announced. I thought it was going to be exactly like the Avengers and no doubt many gamers did and unfortunately, they missed out on a great game.
SE treated their western studios like crap. But then I guess these studios are worth more than $300 million. The team is super talented. GOTG was one of the best game last year. CD is one of the best studio when it comes to single player 3rd person games.
I would probably agree, but the numbers likely would disagree we us both.
we know that Square lost 63 mil on avengers. i dont think its likely they could have lost nearly 140 million between support for a launched game, and Guardians of the Galaxy. This number sounds off. regardless tho Square is literally so incompetent for making avengers a destiny clone and then also saying the tomb raider games were disappointing despite selling 14.5 mil on the first, 12 on the second, and 9 mil on the third game, +3 million between them since those last numbers were revealed. Mankind Divided literally didn't even lose them money and we know that for a fact because their earnings report said it contributed significantly to an increase in profit. literally what the hell is wrong with them
Terrible management.
guardians of the galaxy is a good game but i wouldnt of played it if it didnt end up on gamepass, if i knew it was that good i would of paid for it in the 1st place avengers put me off it
They must have paid to much on the IP licenses, because those games don't seem to have costing to much.
wasn't this a timed exclusive also?
Please explain how it being on GP would net additional 200M profit.
More people will play it plus ms has the money to pay them to have it on gamepass.. There's alot of people like me who will wait till it appears on gamepass. When gotg came on gamepass it did very well that square enix themselves. acknowledged it. Remember there's more than 25million subscribers. Even if half of them try it, there's more than the number of copies it sold. More people play on gamepass the more money the developers get
Again, we are talking of 200M, MS wouldn't pay nearly close to that for day one (and it wouldn't have been a fault of SE to not put it day one since that proposition would need to come from MS) nor would we see so much more sales with all given for free.
We don't know how much money developers get for being on gamepass. Alot of games that was day 1on gamepass has said they made profit by having it there. So it does help. But we will never know how successful it could have been sadly as gotg is really a good game which we may never see a sequel.
Its 200 million for two games not just 1. Still 100 million per game is alot. Hope gotg in future will get sequels.
This is the article I
was referring
https://gamerant.com/guardians-of-the-galaxy-xbox-game-pass-good/
