Square Enix Sells Off Tomb Raider and Three Studios to Fund NFT Games

Time Stamp: May 3, 2022 3:02 AM
Source Node: 1289593

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Square Enix has long been a vocal supporter of blockchain and NFT-based games in the gaming industry, but now the company is putting its money where its mouth is. The Japanese company revealed today that it will sell studios and important franchises, including Tomb Raider, to help fund new business ventures, including blockchain. Square Enix has agreed to pay Embracer Group $300 million for Tomb Raider, Deus Ex, Legacy of Kain, and Thief, as well as game developers Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal. In total, roughly 1,100 people are employed by the three studios. In its press release, Square Enix pinned the sale to a need to “[adapt] to the changes underway in the global business environment by establishing a more efficient allocation of resources.” It also specifically called out the “launch of new businesses,” with blockchain listed alongside technology such as A.I. and cloud computing. Square Enix still has its long-running role-playing game franchises like Final Fantasy, Dragon Quest, and Kingdom Hearts, as well as newer IP like Life is Strange and Just Cause. However, the transaction appears to have resulted in a reduction in the company’s total game production operations. The new age is here Embracer Group will also acquire the rights to more than 50 previous Square Enix games. Nordic Games and THQ Nordic were the previous names for the Swedish publisher, which was created in 2011. It rose to prominence as a result of a succession of previous acquisitions, including Borderlands creator Gearbox Entertainment and Dark Horse Comics. Square Enix first entered the crypto gaming space in 2020, spearheading a $2 million fundraising round for The Sandbox, an Ethereum-based metaverse game. Square Enix announced intentions to put its legendary Dungeon Siege franchise into The Sandbox’s gaming environment, which allows players to own virtual land plots sold through NFTs, just this past March. Outside of The Sandbox, though, Square Enix has its own vision. Following a successful test run selling NFT trading cards based on the video game and anime franchise Shi-San-Sei Million Arthur in Japan, the publisher announced intentions to offer its own NFT collectibles and NFT-powered games in November. Square Enix president Yosuke Matsuda reiterated the company’s growing interest in cryptocurrency in January. In a letter, he drew a distinction between people who “play to have fun” and those who “play to contribute,” implying that the latter is conceivable in blockchain games, where users own NFT assets and can earn token incentives based on their actions.  “Blockchain games, which have emerged from their infancy and are at this very moment entering a growth phase, are built upon the premise of a token economy and therefore hold the potential to enable self-sustaining game growth,” he wrote. An NFT is a blockchain-based deed of ownership for a digital asset, such as artwork and collectibles, as well as video game avatars, animals, weapons, and outfits. The overall NFT industry grew to $25 billion in 2021, with gaming accounting for a large portion of that increase, with the Ethereum-based game Axie Infinity alone surpassing $4 billion in NFT trade volume. Square Enix isn’t the first game publisher to embrace NFTs; Ubisoft, in particular, is heavily committed in the space and has released in-game NFT products on the Tezos network. Many gamers, on the other hand, have loudly opposed the technology, citing the environmental impact of some blockchain networks, as well as scams and apparent greed on the part of game producers.

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