Did Square Enix Sell Eidos? A Deep Dive into the Acquisition
Fast answer first. Then use the tabs or video for more detail.
- Watch the video explanation below for a faster overview.
- Game mechanics may change with updates or patches.
- Use this block to get the short answer without scrolling the whole page.
- Read the FAQ section if the article has one.
- Use the table of contents to jump straight to the detailed section you need.
- Watch the video first, then skim the article for specifics.
Yes, Square Enix did sell Eidos. In May 2022, Square Enix finalized the sale of its Western studios, including Eidos-Montréal, along with Crystal Dynamics and Square Enix Montréal, to Embracer Group for $300 million. This sale included the intellectual property rights to several key franchises previously owned by Eidos, such as Tomb Raider, Deus Ex, Thief, and Legacy of Kain, among others. This move marked a significant shift in Square Enix’s strategic direction, as they divested themselves of a considerable portion of their Western game development operations. The sale was part of a larger move to refocus on other areas and projects that the Japanese publisher deemed more profitable and strategically aligned with their long-term vision.
The History of Eidos and Square Enix
To fully understand the implications of this sale, it’s important to look at the historical relationship between Eidos and Square Enix. Eidos, originally a separate entity, was acquired by Square Enix in 2009 for £84.3 million. At the time, Eidos Interactive was part of the SCi Entertainment Group, which briefly took on the Eidos name before being absorbed by Square Enix. This acquisition brought with it a vast catalog of established franchises and development expertise that Square Enix had been looking to leverage. The merger resulted in the formation of Square Enix Europe, which encompassed much of the European operations of the newly acquired company, including the studio Eidos-Montréal which was established in 2007 as part of SCi Entertainment.
Eidos’s Role Within Square Enix
For over a decade, Eidos-Montréal operated under the Square Enix umbrella, contributing to the development of notable titles in franchises like Deus Ex and Thief. However, despite their consistent output, the performance of the studio’s games may not have met Square Enix’s financial expectations. As revealed in analyst reports, there was a sense that the Western studios were possibly cannibalizing sales from the rest of Square Enix’s portfolio. This, according to David Gibson, led to Square Enix’s decision to divest and to potentially improve the overall capital efficiency by streamlining the organization.
The Sale to Embracer Group
The sale of Eidos (along with Crystal Dynamics and Square Enix Montréal) to Embracer Group was a pivotal moment. It resulted in the transfer of all development and publishing rights to the relevant IPs, including the major franchises previously under Square Enix. Embracer Group, a Swedish video game holding company known for its rapid expansion and acquisition of studios and IPs, took over these assets with a stated interest in developing sequels, remakes, and remasters of classic games within these franchises.
Why Did Square Enix Sell?
Square Enix’s official reasoning for selling their Western studios was to potentially improve capital efficiency by focusing on their core businesses. This decision suggests that they may have not considered the return on investment from their western studios as optimal. The sale was also intended to free up resources to pursue other ventures, most notably their increased interest in the NFT and blockchain space. This move, though controversial, shows Square Enix’s clear intent to strategically reallocate their focus and investments. The relatively low sale price of $300 million for multiple studios and iconic IPs also suggests a sense of urgency from Square Enix to finalize this transaction.
Eidos Today Under Embracer Group
Today, Eidos-Montréal operates as part of CDE Entertainment, which is under the umbrella of Embracer Group. The studio has publicly stated that it now owns the games it developed, such as the Deus Ex and Thief series, signaling a new chapter for their development teams. They are currently reportedly working on a new Deus Ex game in early development, a new unannounced IP and assisting Playground Games on the upcoming Fable title.
Frequently Asked Questions (FAQs)
1. How much did Square Enix sell Eidos for?
Square Enix sold Eidos, Crystal Dynamics, and Square Enix Montréal to Embracer Group for a combined price of $300 million. This price included the associated intellectual properties.
2. What franchises did Square Enix sell with Eidos?
Square Enix sold over 50 franchises with the sale of Eidos, including: Tomb Raider, Deus Ex, Thief, Legacy of Kain, and many others.
3. When did Square Enix acquire Eidos?
Square Enix acquired Eidos Interactive in 2009 for £84.3 million, as part of the takeover of the SCi Entertainment Group.
4. Is Eidos still in business?
Yes, Eidos-Montréal is still active as part of the Embracer Group, operating under CDE Entertainment.
5. Who currently owns the Tomb Raider franchise?
The Tomb Raider franchise is now owned by CDE Entertainment which is part of Embracer Group, after the acquisition from Square Enix.
6. What projects is Eidos currently working on?
Eidos Montreal is said to be working on a new IP, developing a new Deus Ex game (reported to be in very early development in late 2022), and assisting Playground Games on the new Fable title.
7. What was Eidos’s financial performance before the sale?
Eidos Interactive (which includes Eidos Montréal and Square Enix Montreal) earned CAN $248m revenue in the last three years, but just CAN $10.3m in operating income.
8. Why did Square Enix sell its Western studios?
Square Enix stated their reason for the sale was to improve capital efficiency by focusing on other ventures. There were also concerns about potential cannibalization of sales from their Western studios. They wanted to focus on areas like NFT and blockchain technology.
9. Who is Embracer Group?
Embracer Group is a Swedish video game holding company that owns over 76 internal studios across the globe, controlled by Lars Wingefors. They are known for rapidly acquiring studios and intellectual properties.
10. What does Eidos mean in Greek?
The word “Eidos” in Greek means “form, essence, type, or species.” In philosophy, it’s a concept related to Plato’s theory of forms and Aristotle’s theory of universals.
11. How large is the Eidos team?
Eidos-Montréal has a staff of more than **500 employees**, making it a large studio.
12. Did Square Enix stop selling Final Fantasy XIV?
Square Enix suspended digital and retail sales of **Final Fantasy XIV** due to high server congestion after the release of the "Endwalker" expansion. It was not a permanent discontinuation of the game.
13. Does Eidos own the Deus Ex games now?
Yes, Eidos-Montréal has stated that they now own the rights to the **Deus Ex** and **Thief** games that they developed.
14. What is Square?
The word **Square**, in reference to the video game industry, refers to **Square Enix**. The word **Square** by itself is the trade name of **Block, Inc**, a financial services platform.
15. Who replaced Yosuke Matsuda at Square Enix?
Takahashi Kiryu, a company director, replaced Yosuke Matsuda as president and representative director of Square Enix, following an organizational restructuring.