Just weeks after selling several western studios and IPs to Embracer Group, Square Enix is looking to purchase and/or establish new studios. In the financial results published on Friday, Square Enix further explained the reason for selling off its western assets, saying the sales would allow it to achieve sustained growth through “selection and concentration of company resources”. This includes better aligning overseas publishing operations with its Tokyo HQ, and focusing on new businesses such as blockchain, AI and the cloud, as well as intending to reshape its Digital Entertainment portfolio by creating new IP, speeding up decision making through an integrated group management, and by “boosting game development capabilities by establishing new studios, M&A, etc.”
This actually falls in line with comments made by Square Enix president Yosuke Matsuda in an interview with Yahoo Japan, where he said the company’s Japanese studios should not try to develop games aimed at the western market. To be specific, he noted that while Square Enix’s games are a success all over the world, the western game style is one that the company should not try and imitate. This being said, Square Enix did reiterate that “The Company’s overseas studios will continue to publish franchises such as Just Cause, Outriders and Life is Strange”.
So while it may seem odd that Square Enix is looking to purchase more studios, it actually makes sense if the company is simply going in a different direction.