With NFT Market Collapse, Square Enix Sells Some of Its Highest IP Addresses to Embracer Group for Blockchain Investment
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It was news a few days ago that Embracer Group, a Swedish holding company, had bought Crystal Dynamics, Eidos Montreal and Square Enix Montreal, three of the largest Square Enix studios in the West. The idea is to invest in the Blockchain market, but the timing leaves fans and investors skeptical.
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Who buys and what?
Embracer Group, formerly THQ Nordic, is a holding company of 10 operating groups, for a total of 124 studios and in-house publishers. Perhaps his studio names are little known among gamers, to name a few: publisher of comics and animation Dark Horse media; Gearbox modes (Series developers Borderlands); Koch Media owner of the Italian company among others teacher (MotoGP). The Swedish group, with the purchase of the studios, also secures its associated IP addresses such as Tomb riderAnd The former god and privilege kenya heritage.
Reasons (possible) to sell
Since the early 1910’s, Square Enix has been one of the Japanese companies most interested in investing in the Western market. In 2009 entered with the purchase Eidos Interactive and his intellectual property. Later undertook to update the new stock pool, among which stand out Tomb riderAnd Assassin And The former god. All the games that have undergone a reboot made them more modern and more suitable for a contemporary audience. He later collaborated with several development houses in creating titles such as life is strangeAnd sleeping dogs or persistence Just a reason. Unfortunately the computer restart Tomb rider nor that Assassin – Although highly appreciated by fans and critics – they have managed to meet the economic expectations of the investment. Added to this are the failures of recent years: in 2021 a video game appeared Guardians of the GalaxyOnce again greatly appreciated by fans and critics, it only earned tepid returns and, above all, weighs in on the flop. Avengersa fiasco on all fronts, unable to amortize initial expenses of $190 million.
The tepid results of these games are surrounded by the successes, even in the US and European markets, of many RPGs of the development house’s eastern studios. their historical IP address, Final Fantasygrinds the blows with all of the online MMO game like Final Fantasy 14both with historical remakes like that of Final Fantasy 7 And strange paradise.
Square Enix movement and NFT market
Already in January 2022, President Yosuke Matsuda, expressed the company’s intention to invest in the Blockchain market. The sale of studies to the Embracer Group should provide the economic capital to enter the sector, even if neither how nor when has been announced yet. However, the timing can only be the worst. In fact, along with announcing the sale, a report on The Wall Street Journal According to September last year, the value of NFTs is down 92%. It went from an average of $225,000 at its peak to just $19.00. Added to this is the 88% collapse of active portfolios. Crisis, those of NFTs, which are part of the general panorama of the Blockchain crisis, which saw Bitcoin drop in value by 43%.
“The NFT market is collapsing. Sales have fallen to a daily average of about 19,000 this week, down 92% from a peak of around 225,000 in September. Active portfolios are down 88% to around 14,000 last week from 119,000 in November. https://t .co/ChjpIwu3OP pic.twitter.com/tTfezUQPjK
– Jessefelder (@jessefelder) May 3, 2022
Some investors, such as Sina Estafi, who bought NFT for the first tweet in history for $2.9 million, believe that this is little market volatility and that it should rise again soon. Doubts about its objectivity arise when you consider that it recently lost almost all of its investment, when the above tweet raised a few thousand dollars once it was put up for auction again. Moreover, many experts suspect that this could be the bursting of a very terrifying blockchain bubble.
Matsuda hasn’t announced any initiative yet, although many fear the story isn’t too happy between the NFT marketplace and video game developers like GSC Game World, Team17 or Ubisoft, who have tried to create aesthetic things for him. Ghost Recon, but the sale failed miserably, also due to the choice to impose insane access requirements (some helmets require more than 600 hours of gameplay). All that’s left is to wait and see Square Enix’s next moves.
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