Square Enix as part of its recent financial quarterly report, announced the reason for the sale of Crystal Dynamics and Eidos, which surprised many.
The company allegedly feared that sales of projects like Tomb Raider, Deus Ex, The Avengers and Guardians of the Galaxy will hamper sales of the firm’s other games – and the studio move allegedly helped improve capital efficiency.
The explanation caused confusion among users for a number of reasons. For example, earlier Square Enix mentioned that sales of such projects were not so strong. In particular, this concerned the same Guardians.
In addition, the release window and genres of individual games practically do not intersect with each other, especially when compared with Final Fantasy and Dragon Quest. Analysts suggest that Square Enix’s real desire was to try to get someone like Sony interested in a takeover, which is easier to do without these studios that do not fit into the “world view” of the company.
It is possible that the large expenses required by the production of those same games with low sales were originally implied, but this issue was not explained in detail.
In any case, Crystal Dynamics and Eidos will soon become part of the Embracer Group, what the latter cost $300 million – the deal is planned to be closed this year. At the same time, in the same quarterly report, Square Enix noted that sales fell by 15.5%, and operating profit fell by 16.7 %.