Square Enix sells several properties worth $300M to Embracer Group

Japan-based Square Enix has announced plans to sell off its studios and leading properties such as Tomb Raider. The sale will allow Square Enix to gain access to funds that will support its new business decisions, such as advancing into the blockchain space.

Square Enix sells Tomb Raider and Three Studios

Square Enix will be selling some of its properties valued at $300 million to Embracer Group. These properties include Crystal Dynamics, Deus Ex, Eidos-Montreal, Legacy of Kain, Square Enix Montreal, Thief and Tomb Raider.

In a press release, Square Enix said that this sale was crucial to allow the firm to have time to be part of “the changes underway in the global business environment by establishing a more efficient allocation of resources.” The firm also talked about the launch of new businesses using blockchain technology and adopting new technologies such as cloud computing and artificial intelligence.

Square Enix will maintain some of its most outstanding franchises, including Dragon Quest, Final Fantasy and Kingdom Hearts. It will also maintain newer properties such as Life is Strange and Just Cause. However, its game development activities will be trimmed down significantly.

Square Enix’s endeavour into crypto

Square Enix first announced its move into the crypto space in 2020. At the time, the company led a $2 million funding round for The Sandbox, a metaverse game on the Ethereum network. In March this year, Square Enix announced it would bring the Dungeon Siege property into The Sandbox to allow players to own virtual land sold in non-fungible tokens.

Nevertheless, Square Enix is also focusing on other projects outside The Sandbox. In November last year, it announced plans for its own NFT collection after the successful testing for NFT trading cards based upon Shi-San-Sei Million Arthur.

Earlier this year, the president of Square Enix, Yosuke Matsuda, announced the firm’s move toward the cryptocurrency sector. In a letter, he said there was a difference between the people who played games for fun and those that played games to contribute, adding that that player contribution was possible in blockchain gaming because users could own NFT assets and receive tokens as rewards for their engagement.

“Blockchain games, which have emerged from their infancy and are at this very moment entering a growth phase, are built upon the premise of a token economy and therefore hold the potential to enable self-sustaining game growth,” he added.

NFTs have become increasingly popular over the past year. NFTs can represent various things, including digital collectibles and artworks. In 2021, the NFT market increased to $25 billion. Gaming was the top factor contributing to this growth as Axie Infinity has $4 billion worth of NFT volumes so far.

Square Enix is not the only game developer looking toward NFTs. Other gaming giants such as Ubisoft also have NFT plans. Last year, Ubisoft launched the Quartz project to support NFTs. However, gamers have remained opposed to NFTs. Some have cited the impact on the environment as one of the reasons for advocating against crypto assets.