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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.

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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.

George Yang
George Yang is a freelance games writer for Digital Trends. He has written for places such as IGN, GameSpot, The Washington…
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