Square Enix sells off western studios and IP - including Tomb Raider and Deus Ex Eurogamer.net If you click on a link and make a purchase we may receive a small commission. Read our editorial policy. Square Enix sells off western studios and IP - including Tomb Raider and Deus Ex To Embracer Group for just $300m. News by Wesley Yin-Poole Deputy Editorial Director Published on 2 May 2022 222 comments Square Enix has sold off its western studios and over 50 intellectual properties to Embracer Group for just $300m. The sale, which is set to go through by September this year, means Embracer owns Crystal Dynamics, Eidos Montreal and Square Enix Montreal, as well as IPs including Tomb Raider, Deus Ex, Thief and Legacy of Kain. That amounts to around 1100 employees. As already announced, a new Tomb Raider is in development at Crystal Dynamics, built on Unreal Engine 5. Thoughts now turn to other games potentially in development at these just-bought studios. Watch on YouTube Guardians of the Galaxy: PS4/Pro vs Xbox One/X Tested - Can Last-Gen Consoles Keep Up? In its note to press, Embracer said it "sees an opportunity to invest in these franchises" (Tomb Raider and Deus Ex), "as well as the additional acquired IPs such as Legacy of Kain, Thief and other original franchises". The deal does not include games Square Enix publishes from external studios, such as Life is Strange, Just Cause and Outriders. The $300m figure for the deal has raised eyebrows in the context of the huge sums video game companies have sold for recently. Sony bought Bungie and its Destiny franchise for $3.6bn. Indeed, Embracer bought Borderlands maker Gearbox for up to $1.3bn. Senior analyst at Niko Partners, Daniel Ahmad, tweeted to say Square Enix's western studios have "underperformed over numerous titles", with the company's biggest growth coming from Japan-made mobile phone games and MMOs. According to Ahmad, Square Enix had looked to sell the western studios for "a while". In February, Square Enix said Eidos Montreal's generally well-received Guardians of the Galaxy game had "undershot expectations". While Crystal Dynamics' Marvel's Avengers game continues to receive updates, it's widely considered to have been a commercial disaster. Square Enix said the sale to Embracer "enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud". Become a Eurogamer subscriber and get your first month for £1 Get your first month for £1 (normally £3.99) when you buy a Standard Eurogamer subscription. Enjoy ad-free browsing, merch discounts, our monthly letter from the editor, and show your support with a supporter-exclusive comment flair! Support us View supporter archive More News Atari will hold RollerCoaster Tycoon rights for another decade Ups and downs. 7 Lady Dimitrescu will be a tad smaller in Resident Evil Village's Mercenaries DLC Level the playing field. 1 Overwatch 2 suffers another DDoS attack and character roster bugs Mei Mei. 8 Nintendo Switch firmware update lets you take screenshots in the Switch Online app The app on your console, not your phone. 7 Latest Articles Genshin Impact Path of Gleaming Jade dates, login event rewards Including other anniversary rewards and how to claim them. Atari will hold RollerCoaster Tycoon rights for another decade Ups and downs. 7 Jelly Deals Logitech's G Pro X gaming headset is its lowest-ever price during Amazon's Early Access sale Prime Members can get it for just £52. Jelly Deals Save over £500 off the retail price on this beefy ASUS TUF Dash gaming laptop from Amazon Under £1080 for an RTX 3070 laptop. Supporters Only Premium only Off Topic: Take a minute to appreciate Cookin' with Coolio's incredible scallops recipe. What a great book. Premium only Off Topic: Reading City of Glass in comic form "Where exactly am I going?" Premium only Off Topic: Il Buco is a transporting film about a really big hole Underlands. Off-Topic Netflix handled Sandman brilliantly It was Dreamy. 9 Buy things with globes on them And other lovely Eurogamer merch in our official store! Explore our store