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Embracer Group enters into an agreement to acquire Eidos, Crystal Dynamics, and Square Enix Montréal amongst other assets
- Thread starter DForce
- Start date
FalsettoVibe
Member
There goes the _____ could just outbid _____ talk. No matter how much money any of these big companies have (MS, Sony, Tencent, etc), they are only going to buy who the want.
MightySquirrel
Banned
These guys keep embracing studios left and right.
Bernd Lauert
Banned
Chukhopops
Member
Can’t figure it out either, from the outside it looks like the dumbest decision ever from Square Enix.
Even if you canned all the developers the IPs would be worth it.
Only guess is that they were going to announce abyssal results and this will make them look a bit better, saving a few heads in the JP HQ?
JohnnyFootball
GerAlt-Right. Ciriously.
I care about one thing:
Just get me a Deus Ex Mankind Divided sequel.
Just do that and I'm 100% behind the move.
Also, get actually market your Tomb Raider games. Shadow of the Tomb Raider should have received more sales than it did.
Just get me a Deus Ex Mankind Divided sequel.
Just do that and I'm 100% behind the move.
Also, get actually market your Tomb Raider games. Shadow of the Tomb Raider should have received more sales than it did.
adamsapple
Or is it just one of Phil's balls in my throat?
Fuckin' hell.
Square Enix have done nothing but squander their western studios and IP and every time something happens, they immediately blame the western arms.
I'm happy they're selling them off to anyone else. Square's fucking terrible at managing studios.
Square Enix have done nothing but squander their western studios and IP and every time something happens, they immediately blame the western arms.
I'm happy they're selling them off to anyone else. Square's fucking terrible at managing studios.
oldergamer
Member
Whoa i didnt see this coming. I had a feeling those studios would be sold. Who is gonna by the embracer group now lol
Papacheeks
Banned
As a money generator, Destiny shits on the money made by the last 3 tomb raiders.
Destiny has been making money since 2014 annually.
Rise of the tomb raider sold half of what Tomb raider 2013 sold, and shadow sold even less than that title.
Square just was bleeding money hence Crystal Dynamics getting pimped out to Microsoft for Perfect Dark. They are getting rid of the fat, at this point all those ip's are not worth close to what they were. And square just wants out of these brands.
adamsapple
Or is it just one of Phil's balls in my throat?
Deus Ex can finally get another chance !!
. . .or the IPS don't interest them. There's nothing stopping them from making any other purchases if they really wanted to.
bitbydeath
Member
And the cherry on top is, despite paying those crazy prices they’re still remaining multi platform.
Hezekiah
Banned
Which means more money
Belthazar
Member
But still... A single tomb raider game can sell upwards of 5 million copies, which would already make more revenue than what embracer paid for the entire thing
Activision/Blizzard did $8.8 Billion in revenue in 2021.
Crystal Dynamics/Eidos did about $193 Million in revenue in 2021.
bitbydeath
Member
We know why, that doesn’t take from how much of a better buy this is.
Ass of Can Whooping
Gold Member
Maybe, but production costs and revenue splits means actual profit would be in the tens of millions
JackSparr0w
Banned
And you see people hoping the MTX plague will end soon
lordarchaon666
Member
Legacy of Kain and/or Thief remasters when?
Bernd Lauert
Banned
I get it, we're all boomers who love dead old IPs like Legacy of Kain, but the market reality is just way different.
Thirty7ven
Banned
They have Uncharted already, it’s worthless for Sony.
bitbydeath
Member
Furthermore:
400M acquisition w/193M per year = 2 years to pay off.
70B acquisition w/8.8B = 8 years to pay off.
Bernd Lauert
Banned
bitbydeath
Member
It’s obviously a lot worse the higher the amount, I was putting it lightly.
Kinda surprised by everything in this news, the low value of the studios, the fact no one outbid Embracer among EA, T2, Ubisoft, Sony, Microsoft.
This is also basically Crystal Dynamics so it's interesting that MS is asking them to help for Perfect Dark but they haven't jumped at the opportunity. Hands full to get the Activision deal approved? They actually don't see much value in the studio business wise?
Let's see how things unfold and which games are greenlighted under Embracer.
This is also basically Crystal Dynamics so it's interesting that MS is asking them to help for Perfect Dark but they haven't jumped at the opportunity. Hands full to get the Activision deal approved? They actually don't see much value in the studio business wise?
Let's see how things unfold and which games are greenlighted under Embracer.
Bigger buy and "better buy" are two different things. Curious what makes this a better buy? Based on what? Microsoft is getting multiple billion dollar IPs in the Activ/Blizzard deal.
Punished Miku
Human Rights Subscription Service
didn't see that coming. Fine I guess? Not much really changes honestly. But yeah, surprising that MS wasn't able to get it given the PD situation. If SQEX waited another year, they probably could have sold them to MS for a lot more.
Papacheeks
Banned
It did .......in 2013, then uncharted 4 and lost legacy came out?
That market is saturated in action adventure games. And they had like 130-150Million budget wise for each one and each one sold less and less. 5 million is enough to break even on maybe production costs? But not PR, commercials.
TR as a brand for now is dead. Just cause as a brand is basically dead, hitman though critically great doesn't light the world on fire sales wise compared to juggernaughts like Japanese side FF, Kingdom hearts, ect. This was a smart move that Square has been trying to do for past 4 years. The last couple releases basically solidified this sale.
I would also say that, them getting rid of those IP's at such a low sale, implies a fire sale. Which could be because of the worth looked at by company or they have other studios in easter part of company making games like Forspoken that are very western in design and appeal. On top of usually a fire sale implies there's something else happening within the company like a restructuring for another buyout.
I believe the announcement of Sony Square Enix is now within weeks to a couple months away. The fact Square is wanting to focus on cloud/AI alligns with Sony's new investments in past couple years. Sony is larger than Square and could help facilitate their goals for those sectors.
bitbydeath
Member
Stated above, as well as better IP, the money would be made back far sooner.
KungFucius
King Snowflake
Jesus. I guess the price tag shows how poor the outlook for Deus Ex and Tomb Raider is. Hopefully they can revitalize these franchises.
adamsapple
Or is it just one of Phil's balls in my throat?
Better for you subjectively because you like the 2, 3 IPs being sold more does not mean a better business buy lol.
S0ULZB0URNE
Member
not even close
Papacheeks
Banned
This feels like a fire sale and usually that implies something else is happening.
adamsapple
Or is it just one of Phil's balls in my throat?
All the folks comparing this with Bungie and Activision Blizzard deals.
y'all need a reality check and stop posting outta ya butts lol.
y'all need a reality check and stop posting outta ya butts lol.
Bernd Lauert
Banned
Nostalgia is a hell of a drug. People love those old IPs, but a Destiny 2 DLC or some random mobile game from King make more money than all the IPs combined. It is what it is.
Activision/Blizzard 10,000+ employees
Crystal Dynamics/Eidos about 1,000 employees
Talent has to be taken in account too.
Better IP is subjective. Short term return on investment vs long term revenue. I'm sure MS has time.
Vognerful
Member
They guy is a hardcore Abandoned conspiracist, what would you expect?
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CosmicComet
Member
This is unironically true.
That was such shit negotiation by Sony. 4 billion just to keep Bungie exactly the same as it is now (multiplat). Lol
nominedomine
Banned
People here talk way too much about size and revenue. It's all about profit in the end of the day.
It will pay for itself, so what does Sony lose? Very low risk move for an established studio. Sony bought it's way into becoming a much bigger player in the GaaS space, something they were lacking.
CoD can be much bigger than Destiny or Bungie's next game but Destiny is still really big.
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Papacheeks
Banned
Do you know how much Money Bungie generates? Their last expansion for Destiny 2 was the most preordered game in 2022. They made a lot of money this year and will continue to make money throughout all of 2022.
It's smart business, MS will make shit tons of money once the deal is final by next year. Candy crush and COD will easily recoup the 70 Billion in a short amount of time.
Mibu no ookami
Banned
300 million for a group of companies deeply struggling…
Insomniac went for less coming off their most successful game.
Yes, inflation but the group isn’t great and probably why no one else bought them.
PhaseJump
Banned
The usual Playstation, Microsoft, Amazon, Apple, Google, Facebook argument can be made.
I'm going to shrug and wait for it to be bought by Saudi Arabia, and leveraged to support a new SNK Neo Geo system.
Unknown?
Member
Be fair, he ACTUALLY thought he had the best Xbox lineup ever with that move.
nominedomine
Banned
The sad part it that he probably did at that point, the bar wasn't that high.
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Mibu no ookami
Banned
The uncharted movie did better than any of the Tomb raider movies.
They don’t need Tomb raider.
Superayate
Member
Jesus Christ, what is this statement... Do you really think that's like that the companies calculate any return on investment ??? Like Acti/blizzard will be valued 0 dollars after being integrated into Microsoft...