Square Enix is bidding farewell to its Tomb Raider franchise as part of a $300 million contract. Next-gen technologies like blockchain, NFTs, and cloud gaming will now take up the slack for the video game company.
The move comes on the heels of Enix’s sale to Swedish conglomerate Embracer Group.
Square Enix Subsidiaries to be Acquired by Embracer Group
Square Enix has announced a new agreement with Swedish media conglomerate Embracer Group AB, according to an official statement. Before a rebrand, the company was known as THQ Nordic, and it now owns a significant stake in the western video game division of Square Enix subsidiaries Crystal Dynamics, Eidos Montreal, and Square Enix Montreal studios. Embrazer Group will acquire the divisions of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal studios.
In 2013, Crystal Dynamics unveiled a new Tomb Raider game.. The successful debut resulted in two more titles, Rise of the Tomb Raider and Shadow of the Tomb Raider, which were also well received. Lara Croft’s fans bought over 35 million copies of the game’s developer since it was released in 1996.
However, Embracer will acquire the popular archaeologist and, perhaps, her enormous following as a result of the acquisition. Tomb Raider is not the only Square Enix game to be discontinued as a result of the merger. Embracer Group will also gain intellectual properties such as Deus Ex, Thief, and Legacy of Kain for $300 million in cash. In addition, more than 50 titles from Square Enix’s back catalog are expected to be given over.
What are Square Enix’s Goals with This?
According to their statement, allowing Square Enix to focus on blockchain, AI, and cloud investments by selling off significant intellectual properties will allow the firm to do so. Square Enix has expressed interest in the DeFi gaming industry, as well as a possible Square Enix cryptocurrency and games that use tokenomics.
Blockchain games have recently gained a lot of traction. Developers have opened the door for a variety of possibilities by integrating video games and blockchain technology. P2E games let gamers to cash out and acquire NFTs as in-game assets, which they may then sell later.
In addition, blockchain-based games have a long history of generating large profits from their virtual plots. Yuga Labs recently sold $320 million worth of real estate in its planned game. Despite their worldwide appeal, these games do not seem to attract as many long-time gamers.
Ubisoft, the creator of Assassin’s Creed, has experimented with non-fungible tokens in one of its games. The idea was met with significant criticism, however, and it failed to go any farther than the announcement trailer.
The reaction was so severe that Ubisoft took down the trailer. Matsuda has acknowledged that traditional gamers have a negative view of DeFi games. He remains optimistic, though, believing that there are people who would like to contribute to the game.
