But what made Square Enix sell Tomb Raider and Deus Ex for a pittance. Obviously the failure of Marvel’s Avengers and Marvel’s Guardians of the Galaxy.
Few of Square Enix’s Western licenses have met the publisher’s expectations in terms of sales. However, two games in particular would be involved in the takeover which took everyone by surprise yesterday. And yes, the disaster of Marvel’s Avengers has something to do with it.
Marvel games, cause of Square Enix takeover?
Yesterday’s announcement of the takeover of Square Enix’s Western licenses had the effect of a bombshell in the industry. The Japanese publisher has resold the intellectual property of Tomb Raider, Deus Ex and several flagship series for only $300 million. Embracer Group, which has been chaining takeovers for a few years now, did a good job. However many are wondering about the reasons that led Square Enix to sell its precious so easily.
As you might expect, Square Enix perceives its Western licenses above all as a financial burden. In several conferences with its investors and documents of its financial results, the firm questioned the sales of the games concerned largely because of a lack of fair forecasts. Many analysts agree that Square Enix never knew what to do with Western titles and as a result they were never able to deliver their full potential.
Marvel’s Avengers lost millions
However, the famous analyst David Gibson, explains one of the main reasons for this acquisition. Marvel games would indeed have precipitated Square Enix’s decision. In just two years, the Japanese giant has lost nearly $200 million from Marvel’s Guardians of the Galaxy and Marvel’s Avengers alone. If the first met with critical but less commercial success, the second was a complete failure. So much so that the publisher was forced to admit his mistake and admit that it was purely and simply a commercial flop.
With unsatisfactory sales of licenses sold yet very expensive by Marvel Games, and a completely loss-making Marvel’s Avengers, Square Enix preferred to pay off its debt by getting rid of the source of its debt. The Japanese company nevertheless retains some popular Western licenses, such as Life is Strange and Just Cause. And Outriders, which also did not meet with critical or commercial success. The 300 million recovered will be used to invest in the blockchain, with NFTs and all the bazaar, as well as in cloud gaming and AI.