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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.

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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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Square Enix sells Tomb Raider, Deus Ex developers to Embracer
Lara Croft runs from a crashing plane in Tomb Raider.

Square Enix has offloaded its North American operations as it announced the sale of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal to Embracer Group today. The deal also nets Embracer Group over 50 notable franchises such as Tomb Raider, Deus Ex, Thief, and Legacy of Kain.
Crystal Dynamics is best known for its work on the Tomb Raider franchise, though it recently released the tumultuous live service Marvel's Avengers game.  Eidos Montreal is behind series like Deus Ex and recently garnered critical acclaim following the release of Guardians of the Galaxy. Square Enix Montreal is a mobile-focused studio that makes games like Lara Croft GO and Hitman Sniper. 

Embracer Group is purchasing the three studios, which employ over 1,100 developers, for only $300 million. The status of certain series like Sleeping Dogs and Gex, as well as the status of the Marvel deal that spawned Marvel's Avengers and the Guardians of the Galaxy game, are still in question. As of now, the only announced game from these studios is a brand-new Tomb Raider that will run on Unreal Engine 5, though the related press release says Crystal Dynamics is "actively working on several AAA projects."
Meanwhile, the announcement says the Eidos Montreal "is working on a host of AAA projects including both new releases from beloved franchises and original IP," and that Square Enix Montreal "will continue to develop and operate memorable mobile games based on AAA IP." Embracer is interested in these studios' potential to make single-player AAA titles for PC, consoles, and mobile and all of the classic series that come with them. 
While it's not the best-known gaming company, Embracer Group is much bigger than you might think. This European holding company owns a massive range of developers and publishers from around the world. THQ Nordic, Deep Silver, Gearbox, Saber Interactive, Coffee Stain, and all of those studios' subsidiaries are owned by Embracer. The company even has holdings outside of video games, as it recently acquired Asmodee and Dark Horse.
These former Square Enix studios and the franchises that come with them will simply beef up the company's already massive offerings. Embracer and Square Enix expect this deal to close between July and September 2022.

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A new Tomb Raider game is in development on Unreal Engine 5
Shadow of the Tomb Raider Review

Crystal Dynamics confirmed that it is working on a new Tomb Raider game that will use Unreal Engine 5, a game engine now available to all developers. 
At the end of Epic Games' The State of Unreal 2022 presentation, which marked the wide release of Unreal Engine 5 to all developers, Crystal Dynamics' Tomb Raider franchise general manager Dallas Dickinson confirmed the new project. No gameplay or in-engine development footage was shown, but Dickinson voiced his enthusiasm for using Unreal Engine 5 to create the project.
"This new engine translates into next-level storytelling in gameplay experiences, and that's why we are thrilled to announce today that we have just started development of our next Tomb Raider game, powered by Unreal Engine 5," he said. "Our goal is to push the envelope of fidelity and to deliver the high-quality cinematic action-adventure experience that fans deserve from both Crystal Dynamics and the Tomb Raider franchise." 
https://twitter.com/tombraider/status/1511368712279904258
There are no new story or gameplay details. However, Crystal Dynamics has previously voiced its intention to connect the most recent trilogy and the classic titles with new Tomb Raider media. Outside of Tomb Raider, Crystal Dynamics is currently working on post-launch support for Marvel's Avengers and is assisting The Initiative in developing the next Perfect Dark game, which also uses Unreal Engine 5. Eidos Montreal, not Crystal Dynamics, actually developed Shadow of the Tomb Raider, so this marks the studio's return to the series. 
The new Tomb Raider is one of several brand-new games that will use Unreal Engine 5, as many studios like Crystal Dynamics and The Witcher's CD Projekt Red have committed to using the game engine for their next titles. The new engine features notable improvements over Unreal Engine 4, namely its Lumen global illumination system and Nanite technology, allowing for increased geometric detail and fidelity.
It sounds like this new Tomb Raider is early in development, so it will likely be a while before we hear more about it. Hopefully, it's an awesome showcase of Unreal Engine 5's power when it launches, presumably only on current-gen platforms. 

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Square Enix brings two surprising RPGs to Sony State of Play
A character in Valkyrie Elysium points.

Square Enix revealed two new titles, The DioField Chronicle and Valkyrie Elysium, to close out the Sony State of Play event on Wednesday. Both games will be released sometime in 2022.

The DioField Chronicle is a tactical RPG that is very reminiscent of fan-favorite Final Fantasy Tactics. However, The DioField Chronicle boasts more modern 3D graphics as opposed to Final Fantasy Tactics' 16-bit style. The trailer showed off some gameplay, as well as some story elements. One interesting takeaway from the trailer is that the game does not have a grid-based movement system, but something more akin to the XCOM series.

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