That’s what my friend told me in regards to the IP’s. We’re both fans of Sleeping Dogs and hope he’s wrong. He was looking it up yesterday and seems like it’s one of the IP’s they kept. Also, Life is Strange is still theirs. It seems like the IP’s that were made by now-defunct studios or studios they never owned (like People Can Fly with Outriders) is what they’ve retained but im not 100% sure.
Wish Embracer would post a list of all the IP’s they have come with the acquisition.
I was first pissed when I heard it was Embracer other than Ms getting then, but as more details were given I think it made sense.
The studios are basically locked to Marvel IP, they will need to renegotiate with Marvel to see if they can even continue production or not.
The studios are operating at a loss currently, because the sales were enough to break even the dev costs (thanks to gamepass as we learned it from a few weeks ago), but not enough to cover the Marvel license
There are some immediate debts that Embracer had to assume, along with the 300m in cash
So it’s basically a 1-1.3bi transaction with ongoing costs for years until the studios are able to release a new game, and that time can be extended further if a new agreement with Disney isn’t reached (or worse, imagine if Disney demands that those games are still to be multiplatform? You’d be looking at half a decade until you could benefit from this purchase).
It’s a shame the studios were in this dire state, but it shows how terribly SE mismanaged them, to the point they are a liability to have and no longer an asset. The talent and IP is definitely there, but is it worth outbidding Embracer in this considering they are guaranteed to get those games without all the hassle?
At least under Embracer we’ll get the games still, and Embracer focus on smaller titles might reduce the turnaround time they will need for them. Also, Embracer mentioned Legacy of Kain in their slide as IPs they are interested in revisiting.
I’m not so sure, their biggest problem is they just seem to struggle to find an audience big enough for their games, with plenty of high quality titles behind them that have just undersold (Avengers being the obvious exception having been both a critical and financial disappointment but even then I think making a GaaS of this sort of just plain difficult and doesn’t necessarily make me think CD can’t still put out good games). That’s why I’m kind of surprised Microsoft didn’t go for them - they don’t need tor rely on traditional sales numbers as much, and game pass makes it far easier for studios like these to reach a wider audience.
Plus while the studios are in an obvious slump I think you’d get a good way towards recovery just letting them make the games they are planning to make next. If Crystal Dynamics came out with a new single player Tomb Raider and Eidos built on the success of Guardians of the Galaxy with a solid sequel they’d already be in MUCH better shape.
If I were to speculate I’d say the reason Microsoft didn’t acquire them is because they’re restricted in what they can do while Activision is going through and that with WB games and potentially others on the market there are simply better options for them.
I’m assuming it’s a reference to Avengers and Guardians of the Galaxy being two of their more recent titles. Personally I don’t really buy that part of the argument, but I can’t think of what else it might be in reference to.
If the rumors about Square Enix West being on a chopping block are true, then there is more to this acquisition than just ABK. By the same logic Microsoft won’t acquire anything from WB. Even Netherrealm.
There was plenty of time to acquire various studios, but Microsoft did not do that. So there is more to it. Like for example - why they did not acquire Certain Affinity months or years ago?
Maybe Microsoft looked that Embracer is gonna to acquire them and decided to let the studios go - after all they will have to support Avengers, deal with Marvel’s licensess and they will stay multiplatform anyway.
So I am new here but was lurkering for a bit.
Anyways my take on this is Xbox probably had the option to go for it regardless of the actv deal.
they have the metrics they looked at what did tomb raider, guardians, avengers etc did in gamepass. Did they move the needle how many people actually played those games on gamepass or the Netflix thought how many people subbed to play those titles?
And also if you made those exclusive with the low profit margins they have could easily out them in the red.
Yeah, there has to be a reason no one wanted them even at those prices. SE basically sold one of the most recognizable IPs for 300 million!! Weird business decision.
Thanks!!
Yeah I agree it’s quite odd but as I said my theory is that those studios are extremely expensive regardless of units sold if a game costs 150 million to make and you only make 160-170 is that worth the gamble.
The total price is closer to $2B since it includes debt that Embracer will be paying. My guess is that if it wasn’t for the fact that it hits $1B and higher that Microsoft gets CD/Eidos. Granted, $2B isn’t a lot compared to the $70B ABK deal but it is when you have that big of a deal pending approval/closure. If it was truly just $300m, I think Microsoft easily gets them with no problems but almost $2B, they backed off would be my guess.
As for The Avengers and Guardians of the Galaxy, it has more to do with being able to sell them after the deal goes through. Square Enix simply doesn’t want anything left over. Doesn’t mean that the games will be supported for years or sequels are coming. I see it as meaning that once the deal closes by September, you’ll still be able to purchase either but the money goes to Embracer Group instead of SE since Embracer Group would be listed as the new publisher. Disney will most likely approve it because any future sales would be extra money so no reason for them to say no.
There are reports that they were not producing games in Square IP and rather had their pipeline locked with marvel IP.
For CD whatever they had was probably canceled when the studio went to help on Pd +TR announced, but I imagine that the others might still have their roadmap filled with Marvel IP.
But still, there’s a good 3 years before any of those studios can release a new game