Square Enix executives, in their first quarterly call since the sale of the Tomb Raider and Deus Ex franchises and the studios that make them, made the decision to investors clear on Friday.
publisher logic, According to analyst David Gibsonis that its Western studios and products may have been eliminating sales from the rest of the group, so selling them “could improve capital efficiency” – essentially, making more money than the company spends to make more money.
Square Enix unloaded Eidos, Crystal Dynamics, and the IP addresses they held for Embracer Group at the beginning of May. The two studios are the latest big-name acquisition of the Sweden-based publishing group, which already owns Gearbox, Saber Interactive, Plaion (formerly Koch Media) and Deep Silver, as well as comic book publisher Dark Horse and board game maker. Asmode.
The sale came after a long time as Square Enix’s western operations will release the AAA game and poorly performing headquarters on its next call with investors. marvelGuardians of the GalaxyA critical success developed by Eidos, Square Enix’s Yosuke Matsuda said in February, “it fell short of our initial expectations.”
Before that, edos marvel avengers The company said in its 2021 annual report that it was “disappointing”. Matsuda said in a 2019 quarterly call Shadow of the Tomb Raider “It’s off to a weak start” after selling 4.12 million units in the previous four months. Matsuda also blamed Shadow of the Tomb Raider And the just a reason 4 (Developed by non-Square Enix studio Avalanche) for a “disappointing quarter”.
In early 2017, apparently Example of gods: humans are divided‘s Sales weren’t enough to save this franchise from hiatus, despite positive reviews and a positive community response. And while it doesn’t own the studio that made its second stab at a live service game, 2021 OutridersHowever, Square Enix told People Can Fly a year ago not to expect any royalties, and the studio confirmed it wasn’t profitable for 2021 despite selling between 2 and 3 million units.
Square Enix told investors that after the $300 million sale of Crystal Dynamics and Eidos, the company will do so $1.4 billion in cash and no debt. Analyst Gibson said selling the studio is “phase one” of the plan to get back on track. Phase Two would “fund the expanded investment in the game” without having to sell studios or stakes in the game to competitors.
Square Enix’s latest quarterly report, published Friday, said sales and operating income were down 16 and 17 percent compared to the same quarter last year, and while sales of the HD games category continued to decline, its MMO unit surged thanks to an increase in “subscribers who They pay “numbers” for Final Fantasy 14, on an annual basis.