Square sells Tomb Raider dev to focus on blockchain

Square Enix has sold off Tomb Raider developer Crystal-Dynamics to Embracer Group as the company shifts its focus to blockchain, AI, and the cloud.

The deal, worth $300 million, Embracer will also acquire Eidos-Montreal and Square Enix Montreal, and along with then IPs such as Deus Ex, Thief, and Legacy of Kain. Embracer Group, formerly known as THQ Nordic, also owns Koch Media (Deep Silver), Sabre Interactive, and Borderlands developer Gearbox.

“”We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades,” Embracer CEO Lars Wingefors said in a press release issued by the company.

In a later Q&A session, Wingefors noted that both Crystal Dynamics and Eidos are already working on a number of “sizable AAA” games, for both existing franchises as well as new IPs.

Details are light on why exactly Square Enix decided to sell off their major Western studios beyond their above stated focus on blockchain technologies. However, it has been reported that the company lost $200 million on Avengers and Guardians of the Galaxy. Both Western studios also seem to be under-performing financially as a whole, with Eidos Montreal only having a profit margin of 0.65%, compared to the company average of 14.2% in 2021.