- Square Enix sells key IPs and games studios for $300 million in effort to free up funds
- This money is earmarked for investments in blockchain gaming, AI, and cloud technologies
This morning, as I sipped my tea like the good Englishman I am, I saw a tweet on my feed. The tweet was by Square Enix and it was subtle, almost purposely dull — as if they had to announce something, but would rather people didn’t read it. When it comes to mainstream gaming, that can only mean one thing: blockchain.
I opened the press release, and sure enough, it’s newsworthy, even without a mention of blockchain or NFTs. Square Enix is selling major IPs, such as Tomb Raider, Deux Ex, Thief, and Legacy of Kain, as well as studios such as Eidos Interactive. So, why is one of the biggest organizations in the gaming industry selling off valuable IPs? What are they raising funds for?
The purpose of the transaction is embedded in a lot of vague corporate jargon about efficiency in resource allocation, accelerated growth, business values, and so on, but if you get past that, you’re rewarded with the following:
Anyone with a finger on the pulse of blockchain gaming’s rise will know that Square Enix is a key ally. In November 2021, we reported that Square Enix had some information on their intent towards blockchain gaming buried in a bi-yearly business briefing. Then in January 2022, Square Enix’s President released his New Year letter which was about as encouraging for blockchain gaming as it could have been. Finally, in March, Square Enix announced the resurrection of its beloved RPG, Dungeon Siege, inside The Sandbox.
This sale by Square Enix of several major IPs and game studios to Embracer Group has raised $300 million and the allocation of those funds could play a significant role in the near future of blockchain gaming. Nevertheless, the reaction to the tweet has been exactly what you might expect of the suspicious, but loud, anti-NFT gamers. Square Enix will be used to that reaction at this stage and it’s pleasing to see companies like Square Enix and Ubisoft remaining resilient; the rewards ought to more than make up for it.