Embracer Group Acquires Crystal Dynamics and Eidos-Montréal in Major Square Enix Deal
In a significant shift within the global video game industry, Embracer Group, the Swedish conglomerate and parent company to labels such as Gearbox, THQ Nordic, and Saber Interactive, has announced a definitive agreement to acquire several prominent studios and intellectual properties (IP) from Square Enix.
The acquisition includes Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a portfolio exceeding 50 established titles, notably featuring the Tomb Raider, Deus Ex, Thief, and Legacy of Kain franchises.
This deal, valued at $300 million USD, marks one of the most high-profile transactions in recent gaming history. According to the official press release, the transaction will involve the transfer of more than 1,100 employees across the three studios to Embracer Group.
The acquisition is expected to be finalized in the second quarter of Embracer’s financial year 2022/2023, placing the closing date between July and September 2022.
Upon completion, Embracer Group will significantly expand its presence in North America, with the United States becoming the company’s largest base for game developers, followed by Canada. Embracer Group’s Chief Executive reiterated the scale of this integration, noting that the company will then operate more than 14,000 employees, including 10,000 game developers, and manage 124 internal studios worldwide.
The company’s content pipeline is set to grow to over 230 games, including at least 30 AAA titles, bolstering its status as one of the industry’s most prolific developers and publishers for both PC and console platforms—including titles available for platforms like the Nintendo Switch and other leading systems. Square Enix commented on the purpose of the transaction, highlighting the opportunity to focus on new business investments in emerging technologies such as blockchain, artificial intelligence, and cloud services.
The Japanese publisher also confirmed that it will continue to manage and publish several major franchises, including Just Cause, Outriders, and Life is Strange, ensuring that key titles remain under the Square Enix banner despite the sale of several well-known IPs. This transaction is part of a larger trend of consolidation within the video game sector, where major deals like Microsoft’s ongoing $68.7 billion acquisition of Activision Blizzard—preceded by its purchase of Bethesda in 2020—are rapidly reshaping industry dynamics.
Embracer’s acquisition of these legendary studios and properties is poised to strengthen its hold on the global content pipeline, ensuring diverse offerings across genres and platforms for years to come. As the video game landscape evolves, the Embracer Group’s expansion sets a new benchmark for how legacy IPs and renowned development teams can reach new audiences across platforms, including Nintendo Switch, eShop, and more.
Stakeholders, enthusiasts, and industry watchers will be observing closely as these storied franchises enter a new era under Embracer’s stewardship.
The acquisition includes Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a portfolio exceeding 50 established titles, notably featuring the Tomb Raider, Deus Ex, Thief, and Legacy of Kain franchises.
This deal, valued at $300 million USD, marks one of the most high-profile transactions in recent gaming history. According to the official press release, the transaction will involve the transfer of more than 1,100 employees across the three studios to Embracer Group.
The acquisition is expected to be finalized in the second quarter of Embracer’s financial year 2022/2023, placing the closing date between July and September 2022.
Upon completion, Embracer Group will significantly expand its presence in North America, with the United States becoming the company’s largest base for game developers, followed by Canada. Embracer Group’s Chief Executive reiterated the scale of this integration, noting that the company will then operate more than 14,000 employees, including 10,000 game developers, and manage 124 internal studios worldwide.
The company’s content pipeline is set to grow to over 230 games, including at least 30 AAA titles, bolstering its status as one of the industry’s most prolific developers and publishers for both PC and console platforms—including titles available for platforms like the Nintendo Switch and other leading systems. Square Enix commented on the purpose of the transaction, highlighting the opportunity to focus on new business investments in emerging technologies such as blockchain, artificial intelligence, and cloud services.
The Japanese publisher also confirmed that it will continue to manage and publish several major franchises, including Just Cause, Outriders, and Life is Strange, ensuring that key titles remain under the Square Enix banner despite the sale of several well-known IPs. This transaction is part of a larger trend of consolidation within the video game sector, where major deals like Microsoft’s ongoing $68.7 billion acquisition of Activision Blizzard—preceded by its purchase of Bethesda in 2020—are rapidly reshaping industry dynamics.
Embracer’s acquisition of these legendary studios and properties is poised to strengthen its hold on the global content pipeline, ensuring diverse offerings across genres and platforms for years to come. As the video game landscape evolves, the Embracer Group’s expansion sets a new benchmark for how legacy IPs and renowned development teams can reach new audiences across platforms, including Nintendo Switch, eShop, and more.
Stakeholders, enthusiasts, and industry watchers will be observing closely as these storied franchises enter a new era under Embracer’s stewardship.
