The recent sale of Crystal Dynamics and Eidos Montreal bySquare Enixcontinues to be a hot topic across the gaming industry. With the funds raised by the transaction with Embracer Group, one corporate area ofSquare Enixcauses concerns for long-term supporters of the company’s games. Square Enix addresses this area within the latest financial results briefing.
On May 2, Embracer Group announced the acquisition of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal for roughly $300 million. At the time, Square Enix announced plans to launch new businesses with the acquired funds and invest in blockchains, NFTs, AI, and the cloud. The news became polarizing for gamers who disagreed with Square Enix’s plans to invest in NFTs instead of brand-new games. Square Enix has many new titles coming down the line, including thehighly anticipatedFinal Fantasy 16.
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Square Enix published its latest full-year financial results briefing in English, revealing funds generated from the studio sales would be used to strengthen the company’s core game business.Square Enix president Yosuke Matsudastates that acquired funds will not be used for blockchains and NFTs as the company diverts its attention away from that business sector. The funds will boost Square Enix’s efforts in maintaining IP, stepping up online offerings in North American and European markets, and focusing on new titles.
Square Enix sold Crystal Dynamics, Eidos Montreal, and Square Enix Montreal as “the primary purpose was a reorientation of our primary portfolio.” Matsuda reiterates the company’s focus on building IP and new games. Specifically, the company president referencesJust Causein the briefing since it is still a Square Enix IP. The company is working on a new title in the franchise, which likely refers toJust Cause Mobileor apotentialJust Cause 5.Just Cause Mobileis a free-to-play shooter set to release in 2022 for Android and iOS.
Matsuda’s statements during the briefing reassure gamers will continue to see Square Enix focus on what it does best. The company will continue to create premiere titles such asForspoken,Final Fantasy 16,Kingdom Hearts 4, and much more. Involvement in NFTs and blockchains could damage the reputation of Square Enix in the active gaming community as gamers primarily seek the next big title.
NFTs and blockchains are part of a highly volatile and profitable business sector that Square Enix is ultimately avoiding. However, the success of major titles, such as thewidely popular MMORPGFinal Fantasy 14, should allow Square Enix to profit without the need for NFTs and blockchains.
