Square Enix Closes $300 Million Sale of Western Studios to Bankroll Blockchain Pivot – Square Enix, a well-known game publishing and development company based in Japan, announced the sale of a portion of its assets earlier this week to fund new activities, including blockchain-based ventures.
Final Fantasy, Kingdom Hearts, and Dragon Quest developer Square Enix is selling its Western studios and IPs to the Embracer Group.
The $300 million agreement involves the sale of studios like Crystal Dynamics and Eidos, the makers of Tomb Raider, as well as more than 50 gaming IPs. In a news statement, the business stated the following about the sale’s goal:
“By establishing a more effective resource allocation, the deal will assist the company respond to the changing global business climate, increasing corporate value”
Furthermore, according to the company, this deal “allows the development of new businesses by going forward with investments in domains such as blockchain, AI, and the cloud.” The agreement intends to help with the company’s administration, as it will now be virtually exclusively made up of Japan-based development studios, with only a few minor international enterprises remaining.
This effort is intended to put into action ideas that Square Enix president Yosuke Matsuda has been publicizing since last year, when the company included blockchain as a key component of its midterm business plan.
The company is highly interested in the use of blockchain technologies to gaming and the benefits that this could have for gamers who actively participate in these experiences, according to the Executive.
Square Enix Closes $300 Million Sale of Western Studios to Bankroll Blockchain Pivot – On the significance of such new technologies, Matsuda stated that by using blockchain technology to incentivise game modders, more unique material can be created, implying the use of token economies in these games.