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Square Enix Reportedly Seeking to Sell Off Stakes in a few of Its Remaining Studios

Square Enix is reportedly seeking to sell off stakes in a few of its wholly-owned owned development studios, and contains said that Crystal Dynamics and Eidos Montral were sold since they “cannibalized” from the wider group.

Reported by games industry analyst David Gibson out of Square Enix’s latest earnings call, the publisher reportedly sees the unexpected sale of Crystal Dynamics, Eidos Montral, and Square Enix Montral as ‘Phase 1’ of its changes to the business enterprise.

Phase 2 will apparently see Square Enix reviewing its portfolio of owned studios, deciding whether to retain full ownership, or allow others to get stakes in those businesses. Per Gibson, the advantage of this might be to permit Square Enix to go resources around between studios easier, with the view apparently towards having the ability to allocate “resources mainly to Japan titles.”

Gibson expects famous brands Sony, Tencent and Nexon to be thinking about purchasing bits of Square Enix’s studios, and management once more expressed fascination with acquiring new developers to improve its portfolio.

The decision reportedly also saw Square Enix explain that it made a decision to market of its high-profile western developers as the likes of Crystal Dynamics “cannibalized” from all of those other group, seemingly making resources harder to allocate over the whole development portfolio presumably because of high development costs on famous brands Marvel’s Avengers.

IGN has contacted Square Enix for a statement on these announcements.

Square Enix’s remaining development studios include its four Creative SECTIONS (which will make famous brands Final Fantasy, Kingdom Hearts, and the recent ‘HD-2D’ type of game), Luminous Productions (Forspoken), Tokyo RPG Factory (I’M Setsuna), Square Enix London Mobile (Tomb Raider Reloaded), and much more.

Similar to gaming companies post-pandemic, Square Enix’s latest earnings saw net sales because of its gaming segment fall year-on-year, even though incredibly successful Final Fantasy 14 once more bucked trends by seeing net sales rise, because of increased amounts of monthly subscribers.

Joe Skrebels is IGN’s Executive Editor of News. Follow him on Twitter. Have a tip for all of us? Desire to discuss a possible story? Please send a contact to newstips@ign.com.

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