Sony is rumored to be buying Square Enix
The level of consolidation in the gaming industry has been at an all-time high in the past two years, with Microsoft and Sony both waving their cash and buying up game developers and studios. The wave of consolidation in the gaming industry is far from over, and after a recent revamp of the PlayStation Plus tiered subscription service, Jim Ryan, president and CEO of Sony Interactive Entertainment, said it plans to acquire more game studios.
Sony’s next phase is rumored to be no longer targeting smaller acquisitions but instead targeting big game developers, for which it has been preparing. A source revealed that Sony is preparing to acquire Square Enix, but the amount involved is relatively large and has high risks, so it is still more cautious at this stage.
For more than two decades, Sony has had a close relationship with Square Enix, which propelled the original PlayStation to the throne of console supremacy with Final Fantasy 7. The subsequent “Final Fantasy” series of works are the main games on the PlayStation console of all generations. When Square Enix was in financial trouble, Sony also helped, buying 18.6% of the other party’s shares (it was only gradually sold in 2014), which shows that the relationship between the two parties is extraordinary.
It is reported that even if Sony acquires Square Enix, it will not adopt the strategy of an exclusive PlayStation platform. On the one hand, with the development of the times, this exclusive method may increase the risk of game development, on the other hand, Sony has recently increased its investment in the PC game market, hoping to cater to a wider group of players, even the recently acquired game studios will continue their multi-platform strategy.
Recently, Square Enix sold its overseas studios Eidos Montréal, Square Enix Montréal, and Crystal Dynamics to Embracer Group for $300 million. The offices involved are distributed in eight locations around the world and employ approximately 1,100 people. Square Enix said this will facilitate resource allocation and accelerate the growth of its core business in digital entertainment.
