Square Enix to Use Crystal Dynamics and Eidos Money to 'Enhance Development Capabilities' - News
by William D'Angelo , posted on 06 June 2022 / 1,921 Views
Square Enix in May of this year announced it has entered an agreement with Embracer Group to sell Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, as well as over 50 IPs for $300 million.
Square Enix president Yosuke Matsuda in the full-year financial results briefing on May 13 that was just released in English said the money will not be used on NFT or blockchain, but will instead be used to improve its "development capabilities."
"Rather than using the proceeds from the divestiture in new investment domains such as NFT and blockchain, we intend to use them primarily to fund our efforts to foster solid IP and to enhance our development capabilities in our core Digital Entertainment segment," said Matsuda.
"Our intention is to undertake fund raising efforts for our new investment domains separate from those for our core business, and we are considering various possibilities, including potentially establishing a CVC."
He added, "Our materials provide an overview and details of the Transaction, but I note that its primary purpose was a reorientation of our portfolio. We especially revisited our studio and title portfolios from the perspective of stepping up our offering of online titles that we develop for the North American and the European market.
"We want to focus on creating new titles that align with our strategy, including ones that leverage new IP. The Just Cause franchise will remain our IP, and we are at work developing a new title in the franchise."
"In addition to reorienting our portfolio, we will also enhance our publishing function. We have created new Chief Publishing Officer (CPO) roles and will be working to optimize the processes in our publishing function and pursuing integrated group management. "
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 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Sounds like that NFT and blockchain backlash finally got to Matsuda before it was too late. Also, I'm glad that Square is looking into taking the Capcom approach of cutting off the excess fat and focusing all their resources towards their internal development teams.
Also, I had no idea 50 IPs were sold to Embracer! I'm sure almost all of them were pretty pointless IP, but that's still insane.
It is like we can only remember 5 or so.
So, I was generally interested in who owns the rights to a game I liked a a kid, and looked into it. Turns out (I think I concluded) SquareEnix owns the rights to Swiv. Makes me think it's many games like this that were included. They won't do anything with it but it's an IP regardless.
Well they could use the opportunity on the likes of Sony and MS and even Nintendo putting more BC titles and offer them as is on the platforms, or make a collection by patching and porting those with minor improvements, perhaps that will help test which would have potential for sequel. I don`t remember Swiv though.
Not many do. https://en.wikipedia.org/wiki/SWIV
I also looked into Mad Professor Moriarti https://en.wikipedia.org/wiki/Mad_Professor_Mariarti - could not find anything here other that Krysalis closed down.
I wanted to see if I could buy the rights.
Been some time since they last talked about it, so perhaps they truly are reevaluating and will decide to not go that way.
I know. Was just saying that been a long time since SE said of their plans to do NFT. Also we had Sega saying that they were reconsidering because of fan feedback and that they wouldn't want to pise them, although are still looking at the subject.
Good to invest on what really matters.
Invest in NFT
Watch it fail
???
Bought by Sony
Profit (maybe)
Well it's the right thing to spend the money on, but I still think for a company that makes more profit in a year and a whole lot more revenue, 300 mil doesn't seem like it would make that massive a difference, especially not when they do lose some revenue going forward because of it.
300M of internal investment on growing studios can make a very big effect, that isn't the same budget of making game.
What a waste!
Good companies floundered under square!
