Square Enix to sell 'Tomb Raider' studio and others to Embracer

Gaming company Square Enix will reduce its developer presence in the West with the sale of the studios behind franchises "Tomb Raider," "Deux Ex" and "Thief" to Sweden's Embracer Group for $300 million. The latest in a series of deals in the video games industry, the sale announced on Monday includes studios Crystal Dynamics, Eidos-Montreal and Square Enix Montreal, affects 1,100 employees and is expected to close in the July-September quarter. Square Enix, whose major franchises include "Final Fantasy" and "Dragon Quest," said the proceeds will be used to invest in areas such as blockchain, artificial intelligence and the cloud. The Tokyo-based company last year said it was reviewing its portfolio to adapt to industry trends such as the focus on the "metaverse," or the idea consumers will spend more time in virtual worlds. Embracer, which has a reputation for acquisitions and a war chest of 10 billion Swedish krona ($1.02 billion), said the deal will give it a pipeline of more than 230 games including 30 big-budget AAA titles.