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Embracer Group has already shut down former Square Enix studio

Embracer Group has reportedly shut down the game studio Onoma, formerly known as Square Enix Montreal. The studio has best known for creating mobile games of Square Enix’s Western franchises such as Lara Croft Go, Hitman Go, and Deus Ex Go.

It was announced in May that Embracer Group would purchase Square Enix’s Western studios and have control of certain franchises like Tomb Raider and Deus Ex. The timing of Onoma’s closure is strange given that it was renamed from Square Enix Montreal only just last month.

According to a report from Bloomberg, it seems to be a cost-cutting measure. Some employees of Onoma will be transferred over to Eidos Montreal. That studio has reportedly canceled an unannounced game, which is a Stranger Things-inspired “kids on bikes” adventure. It is also reducing the scope of another game, which is a new IP.

There is also a new Deus Ex game reportedly in development at Eidos Montreal, but it’s still very early in the process. Eidos Montreal is also reportedly working with Microsoft on some games, including a Fable one, though it’s unknown whether it is the reboot currently in development.

This isn’t the first time a Square Enix studio has worked with Microsoft. In September 2021, Marvel’s Avengers developer Crystal Dynamics announced that it would be co-developing a Perfect Dark reboot with Microsoft AAAA studio The Initiative.

When Square Enix sold its Western studios to Embracer Group, Crystal Dynamics was one of them. However, Crystal Dynamics stated that the sale would not affect the development of Perfect Dark.

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George Yang
George Yang is a freelance games writer for Digital Trends. He has written for places such as IGN, GameSpot, The Washington…
Saints Row developer Volition shut down by Embracer Group
The crew of the Saints Row reboot stands against a wall.

Volition -- the studio behind series like Saints Row -- has been shut down by Embracer Group.
Volition was first founded as Parallax Software in 1993, and made a name for itself over the past 30 years with series like Descent, Red Faction, and Saints Row. The studio has had many owners over that period, first being acquired by THQ before being sold to Plaion, which placed the developer under its Deep Silver label. Plaion and Deep Silver were then acquired by Embracer Group in 2018. Its most recent game, a reboot of Saints Row, was released last year to mixed reviews, which caused Embracer Group to then shift ownership of the studio over to Plaion's sister company, Gearbox Entertainment.
Saints Row is actually a PlayStation Plus Essential game this September, but the studio won't be around to see that because the decision has finally been made to close it. We first learned of this via a post on X from former Volition VFX artist Ryan Hoss; Volition went on to confirm the closure on LinkedIn.
"This past June, Embracer Group announced a restructuring program to strengthen Embracer and maintain its position as a leader in the video game industry," the message explained. "As part of that program, they evaluated strategic and operational goals and made the difficult decision to close Volition effective immediately. To help our team, we are working to provide job assistance and help smooth the transition for our Volition family members."
We reached out to Embracer Group for comment to see if it could provide more specific insight into why it chose to close Volition and will update this article when we get a response.

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