Square Enix Building New Studios Following Sale of Tomb Raider, Marvel’s Avengers

By May 13, 2022The Sandbox
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Square Enix shocked the gaming world in early May when it sold off several major studios, but in its latest financial report, the publisher has promised to build new studios and focus on original IPs.

As reported by GamesRadar, the Square Enix statement outlines the company's plans to strengthen its "IP ecosystem" by cultivating "robust IP (including the creation of new IP)." Underneath a header reading "Reshaping Digital Entertainment portfolio," a bullet point promises to "boost game development capabilities by establishing new studios."

The brief Square Enix report includes three years' worth of financial data as well as an overall breakdown of the publisher's active franchises. It also includes a summary of Square Enix's recent deal with Embracer Group, which saw the Japanese gaming giant part ways with three North American studios and the franchises they were responsible for developing. This industry-shaking deal included major IPs like Tomb Raider, Deus Ex, Thief and Legacy of Kain.

The sell-off by Square Enix left many people questioning the company, as well as the future of game franchises on both sides of the deal. It seems the publisher would like to reassure both fans and investors with this financial statement, promising to "take on new domains" and "enhance global publishing function by appointing Chief Publishing Officer." Embracer Group, a media holding company out of Sweden, paid $300 million in the deal, a tiny amount compared to recent acquisitions in the gaming world by Microsoft and Sony.

Several other pages in the publisher's report are dedicated to outlining the company's initiatives to "promote Blockchain Entertainment domain." This includes bullet points such as "issuing exclusive fungible tokens and designing earnings structures." Square Enix has publicly supported NFTs, blockchain technology and the "metaverse," though many fans have reacted negatively. The new report states the company's plans to invest in Animoca Brands and THE SANDBOX, companies focused on "blockchain games... in THE Web 3.0 space" and "development and operation of the decentralized metaverse."

Not including mobile titles, in 2022 Square Enix has released Babylon's Fall, Life is Strange Remastered Collection, Chocobo GP and Stranger of Paradise: Final Fantasy Origin. Forspoken, a new IP from developer Luminous Productions, was delayed from a May release date to Oct. 11. Square Enix has no other confirmed release dates for 2022.

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