Square Enix... did what?!

Embracer grabs Crystal Dynamics + Eidos Montreal + Square Enix Montreal for $300 million! This isn't just Tomb Raider, Thief, and Deus Ex (no no no)... this includes over 50 back-catalog games.

Square-Enix seemed to have set their sights too high when it comes to certain games like Marvel Avengers and the recent Guardians of the Galaxy. You might recall that their CEO (Yosuke Matsuda) felt that Japanese devs fall short when trying to emulate Western games, but I'm instead of just placing IPs in a closet never to be seen again... at least they're being sold off (finally).

A few things happened in the past that were hints at this sale happening. Square Enix wasn't happy with the performance of Hitman, and Deus Ex back in 2017... and IO Interactive decided to go their own way with the Hitman IP to keep it alive. I think it was awesome for the Hitman developer to make that move, and it was less pressure from corporate.

I wouldn't say Embracer Group is a bad home for these dev teams and their IPs because it shouldn't be when you consider their reach and willingness to adapt, but I hope the new home is even better for the developers and gamers. Currently, Crystal Dynamics is working on a brand new Tomb Raider game (which the franchise has limitless potential in my opinion) + we can't forget about the Microsoft X Crystal Dynamics Perfect Dark reboot.

I would say that Epic Games should've considered placing their hat in the race also... if they want to become a bigger threat as far as PC gaming platforms are concerned, but I wouldn't want there to potentially be restrictions on where the games would be available. Epic is still in the mix with several Eidos Montreal projects being developed with the Unreal Engine 5... so hopefully, it's a win-win for all (especially the gamers). We don't know what that full list of games is that were acquired, but one was Legacy of Kain. I highly doubt Parasite Eve would be part of the package, but one could dream... especially if Square Enix doesn't do anything with it. They annoy the crap out of me with that. Do something with it... do a crowdfund if you don't believe in it, sell it, let someone else work their magic with a remake, collab with Capcom, whatever... make something awesome!

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FTS: Gearbox Entertainment X Embracer Group

Embracer Group and The Gearbox Entertainment Company Successfully Complete Merger

 

FRISCO, Texas (April 6, 2021) – The Gearbox Entertainment Company and Embracer Group announced today that they successfully closed on their up to $1.3 billion merger agreement. Embracer and Gearbox announced in February of 2021 their intention to merge. With this, Gearbox Entertainment is the seventh operating group in the Karlstad, Sweden-headquartered Embracer Group, which has an extensive catalog of more than 240 franchises and more than 7,000 employees around the world. The merger fuels positions Gearbox for rapid growth with its robust IP catalog, AAA development studios, and North American publishing capabilities. 

 

“Our team is incredibly excited about the opportunity we now have,” said Randy Pitchford, founder of The Gearbox Entertainment Company. “Far from riding off into the sunset, we are now positioned to launch new IP, do more with our existing brands, grow our base of incredibly talented team members, and capitalize on new opportunities in our mission to entertain the world. This just the start."

 

With its 550 team members in Frisco, Texas, and Quebec City, Gearbox Entertainment is best known for its critically and commercially successful Borderlands and Brothers in Arms franchises and the development of award-winning, best-selling games in the Half-Life, Counter-Strike, Tony Hawk’s Pro Skater, 007 James Bond, and Halo franchises.   

 

“This was the largest merger that Embracer has undertaken. I am grateful to Randy and his entire team for their enthusiasm, creativity, and vision, says Lars Wingefors, founder and CEO of Embracer Group. "We are confident in Gearbox's long-term future within Embracer Group."

 

Juno Capital Partners and Union Square Advisors LLC acted as M&A and financial advisors to Gearbox on this transaction and Fenwick & West acted as legal counsel.

 

About The Gearbox Entertainment Company

The Gearbox Entertainment Company, LLC is an award-winning, independent creator and distributor of transmedia entertainment for people around the world. Gearbox Entertainment develops and publishes products through its subsidiaries, Gearbox Software and Gearbox Publishing. Gearbox Entertainment has become widely known for successful game franchises including Brothers in Arms and Borderlands, as well as acquired properties Duke Nukem and Homeworld, which it distributes across the world. Gearbox Software is an award-winning, independent developer of interactive entertainment based in Frisco, Texas. It was founded in 1999 by game industry veterans, and its first release was Half-Life: Opposing Force. Gearbox Publishing was established in 2016 with the goal of helping developers around the world bring their products to market while retaining their unique creative visions. More information can be found at www.GearboxSoftware.com.

- D. Hewitt

This is the first time I've ever heard of Embracer, but it's behind a lot of recognizable games. I like games in their catalog but some completely sucked, so I hope this is good news for Gearbox and not the deathblow. We know how big wigs can affect games, but if they increase or maintain quality then this will pay off.

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