Update May 2, 2022: The Initiative confirmed that Crystal Dynamics will continue their work on Perfect Dark after the acquisition.
We're excited to see Crystal Dynamics take these next steps with their studio. Our teams have made great progress in building Perfect Dark together as co-development partners, and we will be continuing this work with them in their next chapter. https://t.co/9gG2VGUV8uWe're excited to see Crystal Dynamics take these next steps with their studio. Our teams have made great progress in building Perfect Dark together as co-development partners, and we will be continuing this work with them in their next chapter. https://t.co/9gG2VGUV8u— TheInitiative (@TheInitiative) May 2, 2022May 2, 2022
Original article:
Recently, Microsoft entered into an agreement with Square Enix to have Crystal Dynamics work with The Initiative to build the upcoming sci-fi FPS Perfect Dark for Xbox, leading to expectations that someday, Microsoft may end up acquiring Crystal Dynamics outright. It seems that another company has beat them to the punch.
Embracer Group has been on an acquisition spree in recent years, buying up masses of core studios from across the spectrum, and today, the company has acquired a whole load more from Square Enix.
Embracer has officially snapped up Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, and a range of familiar western IP including Deus Ex, Tomb Raider, Thief, Legacy of Kain, and "50" back catalogue titles from the Japanese publisher. Embracer's headcount will swell by more than 1100 employees as a result of the deal, which amounts to $300 million USD in cash to be paid once the deal fully closes. Embracer expects the deal to be finalized by September 2022.
"Embracer has been particularly impressed by the studios' rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities."
The news comes as no surprise, as the industry seeks further consolidation in an inflationary market, with major tech companies vying for the future of gaming and virtual worlds in general. Square Enix has long neglected its western teams, arguably, repeatedly casting doubt over franchises like Tomb Raider, and canceling others like Deus Ex and Thief outright.
The fact Embracer name-checked these franchises along with Legacy of Kain is unmistakably a positive sign for fans of those games, but it remains to be seen what, if anything, comes of the deal for consumers. At the very least, it imparts some hope to getting new games under those classic franchises, but it'll come at a loss for Microsoft and Xbox, who most likely sought to acquire at least Crystal Dynamics themselves to help bolster The Initiative.
Microsoft is working to acquire a much bigger fish in the form of Activision-Blizzard right now, which will give them a mass of PC and mobile titles for its push beyond Xbox consoles.
