Crystal Dynamics, Deus Ex, Eidos-Montreal, Marvel&39;s Avengers, Marvel&39;s Guardians Of The Galaxy, Square Enix, Tomb Raider, Xbox One, Xbox Series X/S

In its most recent quarterly earnings call, Square Enix explained its reasoning behind selling off its Western studios.

Back in May, Square Enix announced it was selling off Crystal Dynamics and Eidos Montreal, the studios behind Tomb Raider and Deus Ex respectively. Now, as reported by Polygon, Square Enix has explained in its financial results that this is due to the fact that games from its Western studios might have been cannibalising the sales of its other games, according to analyst David Gibson.

Gibson noted that the sale of the studios and their IPs would have the potential to “improve capital efficiency,” i.e. making more money compared to what it’s spending, in order to continue to make more money. And according to Gibson, the move to sell these studios to Embracer Group is part of its first phase, with the second phase being “diversification of studio capital structure.”

Essentially, games are getting more and more expensive to make, and with Square Enix having full ownership of numerous titles, it needs to be picky over where it puts its resources. So long term, Square Enix appears to be looking to sell stakes in its company to make things a little easier.

There have been numerous rumours that Sony could be acquiring Square Enix, but what makes more sense is a similar move to Sony’s approach with Bungie, where it acquired the Destiny developer, but isn’t looking to take games away from other platforms. As Square Enix does produce a number of titles that release exclusively on the Nintendo Switch, and likely would struggle more on PlayStation or Xbox.

Square Enix moving away from Western studios isn’t too surprising, especially considering it felt both Marvel’s Guardians of the Galaxy and Marvel’s Avengers weren’t as successful as it would have liked, though the latter was obviously plagued by numerous issues.

TECH NEWS RELATED

Key members of the Disco Elysium development team, including lead designer Robert Kurvitz, have reportedly left ZA/UM [Update]

Update (October 3) After publication of the original article, Aleksander Rostov has confirmed on behalf of Robert Kurvitz, Helen Hindpere, and himself – via Twitter – that the trio is no longer at ZA/UM.  Additionally, ZA/UM has provided the following statement regarding the departures: Like any video game, the development ...

View more: Key members of the Disco Elysium development team, including lead designer Robert Kurvitz, have reportedly left ZA/UM [Update]

The Outer Worlds: Spacer's Choice Edition spotted on Taiwanese ratings website for PlayStation 5, Xbox Series X|S, and PC

The Outer Worlds: Spacer's Choice Edition has appeared on the Taiwan Entertainment Rating Software Information website, with PlayStation 5, Xbox Series X|S, and PC listed as platforms. The rating was first spotted by VGC, with Take-Two listed as the game's publisher. The Outer Worlds originally released in October 2019 ...

View more: The Outer Worlds: Spacer's Choice Edition spotted on Taiwanese ratings website for PlayStation 5, Xbox Series X|S, and PC

Pokémon GO In-Game Prices Increasing In Select Regions This October

Pikmin Bloom will also be impacted

View more: Pokémon GO In-Game Prices Increasing In Select Regions This October

Here are the best melee skins in VALORANT

Screengrab via Riot Games Even though VALORANT‘s knifing mechanic doesn’t always work properly, at least players can count on cool melee designs and fascinating animations. Players can take on almost any form of melee weaponry available, with knives being at the forefront of the up-close and personal fighting technique. ...

View more: Here are the best melee skins in VALORANT

Bot gap closed: Yutapon, DFM end LOUD’s Worlds run with first-ever international best-of-five win

Photo by Colin Young-Wolff via Riot Games This League of Legends Worlds 2022 coverage is brought to you by EsportsBet.IO, the official betting partner of Dot Esports. Visit EsportsBet.IO for the best betting odds and in-depth match analytics.Be gamble aware! If the first game of this series between DetonatioN ...

View more: Bot gap closed: Yutapon, DFM end LOUD’s Worlds run with first-ever international best-of-five win

5 Best Haunted Homes in Gaming

Tis’ the season to be petrified, thanks to Halloween being right around the corner and recent games being predominantly horror-themed. And what better way to celebrate the spooky festivities than to go tiptoeing through some of the industry’s most memorable haunted homes? It seems, at least for the next ...

View more: 5 Best Haunted Homes in Gaming

Steam Next Fest Kicks Off With Indie Game Demos and Developer Livestreams

Try out demos for upcoming indie games during the latest iteration of Steam's Next Fest. Developers are also livestreaming their games to answer viewer questions.

View more: Steam Next Fest Kicks Off With Indie Game Demos and Developer Livestreams

Here’s your first look at the amazing Sephiroth amiibo

Well, look what we have here! Earlier today, a Twitter user by the name of @zaypiie released our very first look at the upcoming Sephiroth amiibo, and boy-oh-boy, is it beautiful! At the moment, it’s extremely difficult to tell exactly where this photo was snapped, but we believe it may ...

View more: Here’s your first look at the amazing Sephiroth amiibo

Fandom Buys GameSpot, GameFAQ, Metacritic, & More

Steam Deck Has Shipped Over a Million Units

The Outer Worlds: Spacer’s Choice Edition Spotted on Taiwanese Game Ratings Board’s Website for PC, PS5 and Xbox Series X/S

All Fortnite Halloween skins from every year

Sidescroller RPG Astlibra Revision launches for Steam on October 13

Sonic Frontiers Offering Free Sonic Adventure 2 DLC To Newsletter Subscribers

You can now buy official Pokémon Crocs in Canada

What is the Rickroll music ID in Roblox? Answered

Aussie Deals: Free Sonic Frontiers DLC and Up to 90% off in a Warner Bros. Publisher Sale!

Warframe Amalgam Mods, explained and how to get

Fallout celebrates 25 years with plenty of extras

Final Fantasy 14's Naoki Yoshida Opens Up About Patch 6.2's Success

OTHER TECH NEWS

Top Car News Car News