According to Japanese-based analyst David Gibson, Square Enix announced during a conference call earlier today that it is looking to sell stakes in some of its studios in order to “improve capital efficiency.”
Gibson reports that Square Enix’s sale of Crystal Dynamics and Eidos to Embracer Group was the first phase of the publisher’s plans, with phase 2 being “diversification of studio capital structure.:
Rising development costs of making games means with 100% owned studios, they need to be selective and concentrate resources, which limits expansion. Some studios will remain 100% while others will change (equity method or joint venture).
Gibson added that Squrae Enix “will also look to explore to expand the studio portfolio,” and that the “biggest impact is on EU/US studios around large titles.”
So Square Enix is looking to sell stakes in its studios to others to improve capital efficiency, right when others like Sony etc. are buyers. I would expect Sony, Tencent, Nexon etc would be interested.
Earlier this week, it was reported that Square Enix had requested that Patreon remove a leaked script for the next instalment in the Tomb Raider franchise, which contained casting details on the new Lara Croft.