Square Enix Is Looking to Sell Stakes In Its Studios
It's all in an effort to "improve capital efficiency."
Square Enix held a conference call on August 5 to talk about recent financial results. After that took place, Japan-based analyst David Gibson went to Twitter to talk about the company's plans.
Square Enix Wants to Focus More on Japanese Games
Earlier this year, Square Enix sold off both Crystal Dynamics and Eidos to Embracer Group. According to Gibson, this was merely phase 1 of the company's plan, while phase 2 will include "diversification of studio capital structure."
He went on to write, "Rising development costs of making games means with 100% owned studios, they need to be selective and concentrate resources, which limits expansion." As a result of this, the studio will need to conduct a "studio portfolio review."
Basically, this means that Square Enix wants to allocate more resources toward its Japanese games while downsizing efforts on American and European titles. This can already be seen in how the company sold off the rights to franchises like Tomb Raider and Deus Ex earlier this year to Embracer Group.
One group of people who should be ecstatic at the news is Square Enix's shareholders. The company's share price rose by 11% after the call.
Square Enix has indicated in the recent past that it wants to establish and/or obtain new gaming studios. This suggests the company still plans on pursuing a different direction more closely aligned with its new goals. In April, the Square Enix president stated how Japanese studios shouldn't try to make games aimed squarely at western players.
What do you think of the move? Are you excited to see what Square Enix comes out with next?
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