Square Enix is going to make blockchain games — but that’s not all it’s doing

Square Enix is offloading some of its largest studios. The publisher announced it is selling Crystal Dynamics and Eidos to European megapublisher Embracer Group for $300 million. The deal enables Square to get these less-profitable teams off its books. This is especially important during a costly reloading phase for Crystal Dynamics and Eidos, according to Niko Partners analyst Daniel Ahmad.

“Square Enix’s western studios have underperformed across triple-A games based on owned IP, and more recently licensed IP like Marvel,” Ahmad told GamesBeat. “With high operating costs and a two-year window minimum before we see the next triple-A releases from the studios, it’s likely that Embracer Group is taking on more than just the $300 million price tag in the short term. Embracer will be looking to tap into the talent pool and IP at these studios to generate returns over the long term.”