Embracer fully acquires former Square Enix western studios

By Jesse Lennox August 26, 2022

The acquisition of Square Enix’s western studios and their IP by Embracer Group has been approved, completing the acquisition of the major studios and over 50 IPs including Tomb Raider and Deus Ex.

While the purchase was announced in May, the conditions and approvals for the deal were not finalized until August 26, fully completing the transaction as detailed on Embracer’s official site. The newly acquired studios are set to form Embracer’s 12th operative group led by Phil Rogers. Further details, likely in regards to the name of this operative group and a new name for Square Enix Montreal, are expected at a later date.

The Embracer Group, formerly THQ Nordic AB, is one of the largest companies in the video game industry with over 850 franchises owned or controlled, 120 development studios, and nearly 13,000 employees and contractors spread across its various studios and divisions. The company acquired numerous smaller studios over the years but ramped up over time with acquisitions for companies like Gearbox Entertainment. In May, it purchased all of Square Enix’s western studios, including Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, as well as their IP, for $300 million.

Embracer clearly isn’t done making acquisitions, as the company acquired not only additional game studios such as Bitwave Game and Tripwire Interactive but also the rights to The Lord of the Rings via Middle-earth Enterprises in the months after this Square Enix deal was announced. The gaming industry has seen more acquisitions and consolidation in the last few years than ever before. While most look at Microsoft and Sony’s recent moves in expanding their first-party studios, companies like Embracer and Tencent still dwarf the two console makers by the sheer number of acquisitions.

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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.

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You might not have heard of Embracer Group, but you’ve probably played something a studio it owns developed. Have you played Tiny Tina’s Wonderlands, Valheim, Elex II, or Shadow Warrior 3 recently? Then you’ve been enjoying a game from Embracer.
While Embracer’s name might not be on the box or store page, this European holding company has subtly become one of the biggest companies in the gaming space. If there’s a AA game launching, this studio likely has a hand in it. The company made a big move earlier this year when it acquired major franchises like Tomb Raider after buying Crystal Dynamics, Eidos Montreal, and Square Enix Montreal. Now, it's continuing to assert its dominance with the acquisition of physical game manufacturer Limited Run Games and the rights to The Lord of the Rings IP.
These acquisitions speak to the continued growth of Embracer Group, which looks like it will become a bigger player in the AAA gaming space in the years to come. While Embracer Group has fallen under the radar for many people over the past decade, it’s worth paying attention to in the years to come.
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“Embracer Group is a parent company of businesses led by entrepreneurs in PC, console, mobile and board games, and other related media,” the company boasts on its website. “The group has an extensive catalog of over 850 owned or controlled franchises.”

Embracer Group is a holding company that continuously buys a lot of new studios and IP, making it the somewhat obscure parent company of several notable publishers and developers. It doesn’t help that Embracer Group has actually gone by many names over the years.
Originally known as Nordic Games, the company has steadily acquired various IPs and studios since 2011. A significant shift happened in 2016 when the company rebranded to THQ Nordic AB after acquiring the trademark for, and many assets of, the defunct classic publisher at auction.
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