Square Enix indicated that it intended to establish and/or acquire new game studios, the same month it confirmed that it was in agreement to sell off its biggest Western developers.
Swedish company Embracer announced last week that it had agreed to acquire much of Square Enix’s western development arm for $300 million, including Crystal Dynamics, Eidos Montreal, Square Enix Montreal and a catalog of ‘IP including Tomb Raider and Deus Ex.
In an official statement, Square Enix said at the time that the deal would allow it to focus on blockchain, AI and cloud investments.
In its financial results released on Friday, the Final Fantasy publisher was able to further explain its reasoning behind the sales.
He said the sales would enable him to achieve sustained growth through “the selection and concentration of company resources”, better aligning overseas publishing operations with its Tokyo headquarters and focusing on new activities such as blockchain, AI and cloud.
The company said it intends to reshape its digital entertainment portfolio in part by creating new intellectual property, accelerating decision-making through integrated group management, and “stimulating[ing] game development capabilities by creating new studios, mergers and acquisitions, etc.
While it might seem surprising that Square Enix is already looking to establish studios so soon after selling off established developers, it’s likely the company intends to pursue a different direction more closely aligned with its latest goals.
In a statement released alongside Embracer’s announcement last week, Square Enix said that “going forward, the company’s development function will include its studios in Japan, Square Enix External Studios, and Square Enix Collective.” .
He added, “The company’s overseas studios will continue to release franchises such as Just Cause, Outriders and Life is Strange.”
Square Enix’s president said last month that the company’s Japanese studios shouldn’t try to make games aimed specifically at Western gamers.
In an interview with Yahoo Japan, Yosuke Matsuda explains that while it’s vital that Square Enix’s games sell well globally, it would be a mistake if its Japanese developers tried to emulate the Western style of games.