Square Enix Plans to Establish, Acquire New Studios, and Continue NFT Investments

With less than two weeks to sell three overseas studios and some IP franchises to Embracer Group for $300 million, Square Enix has officially recapped its motivations for the move, along with an outline of its plans for its entertainment segment. digital in the future.

Among its “business strategies” to achieve its “medium-term earnings goals”, Square Enix mentioned its willingness to continue initiatives to build game development capabilities by creating, merging and acquiring studios, as well as by investing in priority areas to promote Blockchain. Entertainment area.

As Axios’ Stephen Totilo (H/T NME) spotted on May 13, these points were raised during Square Enix’s earnings briefing for the past fiscal year.

Regarding the May 2 deal with Embracer Group, the shipment of North American HD game development studio Crystal Dynamics, Canadian HD game development studio Eidos-Montreal, mobile game development studio Square Enix Montreal and a catalog of IPs—including Tomb Raider, Deus Ex, and Thief—Square Enix listed three primary goals that drove the deal:

  1. “Achieving sustained growth through the selection and concentration of
    company resources.
  2. “Better align the overseas publishing function with the organization in Tokyo.”
  3. “Transforming the group’s business portfolio.”

Ultimately, the deal with Embracer Group also appears aligned with Square Enix’s overall goals, including bolstering its IP ecosystem with new studios.

“In anticipation of changes in the global business environment for game development,” Square Enix’s earnings briefing presentation slide reads, “we intend to optimize our resource allocation so that we can develop attractive titles better aligned with customer needs while strengthening our profitability.”

On the back of another goal titled “take on new domains”, Square Enix will apparently seek to accelerate the launch and monetization of its new businesses by moving forward with investments in the following areas: blockchain, artificial intelligence and the cloud.

“Encouraged by the results and feedback from our NFT business, we have decided to produce a second season,” Square Enix said. “Our plan is to integrate gaming content into our service and leverage the development and operational expertise we have accumulated in our existing businesses to explore the potential for revenue structures, scale of play and NFT property experiments in NFT activity.”