Less than two weeks away from three foreign studios and IP franchises selected for $300 million for Embracer Group, Square Enix has officially outlined the reasons for the decision and reviewed its plans to advance the digital entertainment segment.
Among its “business strategies” to achieve its “medium-term revenue goals,” Square Enix noted its willingness to continue its game development initiatives by creating, consolidating, and acquiring studios, as well as investing in targeted areas. to promote blockchain. entertainment area.
Square Enix, which just sold three studios, hopes to launch several new studios pic.twitter.com/DoeIC0NZtX
—Stephen Totillo (@stephentotilo) May 13, 2022
As Axios’ Stephan Totillo (H/T NME) noted on May 13, these points were discussed at Square Enix’s recent earnings briefing.
Under the May 2 agreement Embracer Group, an IP catalog including North American HD game development studio Crystal Dynamics, Canadian HD game development studio Eidos-Montreal, mobile game development studio Square Enix Montreal and Tomb Raider, Deus Ex and Thief – Square Enix, defined the three main objectives that led to the agreement:
- Achieve sustainable growth through choice and focus
Company resources. - “It is better to equate the foreign publishing function with the Tokyo organization.”
- “Transformation of the Group’s business portfolio”.
Overall, the deal with Embracer Group appears to align with Square Enix’s core goals, including strengthening the IP ecosystem with new studios.
“In anticipation of changes in the global business environment for game development,” says Square Enix’s earnings briefing presentation slide, “We aim to optimize resource allocation to create compelling titles that better meet our customers’ needs while increasing our profitability.”
Under another objective, “Obtain new domains”, Square Enix will seek to accelerate the launch and monetization of its new business by investing in the following areas: blockchain, artificial intelligence and cloud.
“Encouraged by the results and feedback from our NFT business, we have decided to do a second season,” Square Enix said. “Our plan is to use the development and operational expertise we have accumulated in our current business to integrate gaming content into our service and explore the potential for revenue structures, scale of play and NFT ownership experience in NFT business.
Source : dbl tap
