Embracer Group might have bagged itself a bargain but speculation suggests that a Sony Square Enix acquisition is still a possibility and even more so now that the publisher has offloaded its non-profitable Western development business. Square Enix has evidently struggled to make the likes of Crystal Dynamics and Eidos Montreal profitable in recent years, reportedly making losses of up to $200 million between Marvel’s Avengers and Marvel’s Guardians of the Galaxy alone. Now, journalist and insider Jeff Grubb suggests that with the recent Embracer Group deal, Square Enix primed itself for an eventual sale.
Why there’s talk of a Sony Square Enix deal
Remember the big PlayStation Studios acquisition rumor that several insiders claimed to have heard last month? According to Grubb, it was a Sony Square Enix acquisition. However, considering that these types of talks are usually highly classified information, there’s no way to ascertain if this rumor is true.
OK. I’ve said this a thousand times, but there’s always someone who is hearing it for the first time: We never really hear enough to report on acquisitions with any certainty. Sony acquiring Square was the big rumor. But I CANNOT confirm that. And I continue to not know. pic.twitter.com/5ZKJruszCE
— Jeff Grubb (@JeffGrubb) May 3, 2022
Don’t get hung up on the blockchain stuff. It seems to me that Square CEO is fixated on it because he thinks it helps him in negotiations and earnings calls — but potential buyers can see through it. pic.twitter.com/wJBXIktMRy
— Jeff Grubb (@JeffGrubb) May 2, 2022
While it’s plausible that Square Enix is priming itself for an eventual sale by shedding its liabilities, who bags the publisher is another matter. Sony does have history of closely working with the company (it also previously held a stake in Square Enix), and it just so happens that the likes of Final Fantasy and Kingdom Hearts alone would make for a lucrative deal, with Final Fantasy XIV partially satisfying Sony’s renewed urge to expand its live service portfolio. As for why Sony didn’t snag those IPs that went to Embracer Group, profitability is a major concern and it’s possible that they don’t fit into the company’s vision for the future. Besides, Sony already has an answer to Tomb Raider in Uncharted.
This is all speculation, of course, but an interesting scenario nonetheless. All eyes will be on Square Enix’s next move.
In other news, Prince of Persia: The Sands of Time remake seems to be in development hell, and Marvel’s Avengers’ future is now uncertain.
