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Embracer Group has already shut down former Square Enix studio

By George Yang November 1, 2022

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

Gaming

Embracer Group may sell Borderlands studio Gearbox Entertainment

Zane fights enemies in Borderlands 3.

Gearbox Entertainment -- the Texas-based game developer and publisher behind series like Borderlands, Remnant, and Homeworld -- has been part of Embracer Group since 2021. That might not be the case for much longer, though, according to some new reports.
Reuters reported on Monday morning that Embracer Group has considered selling off Gearbox Entertainment as part of its restructuring plan. For the past several years, Embracer Group has made a name for itself by constantly acquiring developers, publishers, and IP, but that trend started to go the other way following a failed deal with the Saudi Arabia government-funded Savvy Games Group. Embracer is now laying off developers and shutting down studios. The most recent example of this was the closure of Volition, the Gearbox-owned developer behind the Saints Row series.
It now seems like Embracer Group doesn't just want to rid itself of Volition, but potentially Gearbox Entertainment as a whole. While Embracer Group is not commenting on the matter, Bloomberg leaked an internal email from Gearbox's chief communication officer Dan Hewitt affirming that Gearbox could potentially be sold off or go back to being independent.

"The base case is that Gearbox remains a part of Embracer. However, there are many options under consideration, including Gearbox's transfer, taking Gearbox independent, and others. Ultimately, we'll move ahead with whichever path is best for both Gearbox and Embracer," the email states. "Nothing has been decided yet, but there will be a lot of speculation in the coming weeks."
Gearbox Entertainment's fate is currently up in the air, so it's certainly a company to watch in the coming weeks and months. Regardless, it's now starkly apparent that Embracer Group's growth spurt is at an end if it's considering getting rid of Gearbox despite the success of games like Borderlands 3 and Remnant II.

Gaming

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.

Gaming

Square Enix commits to release more games on Xbox, starting with Final Fantasy XIV

A screenshot of Final Fantasy XIV running on Xbox.

During Final Fantasy XIV's FanFest today, Square Enix not only confirmed that its popular MMO would finally come to Xbox Series X and Xbox Series S in spring 2024, but that it will commit to bringing more of its games to Xbox going forward.

Over the past decade, Square Enix tended to partner with PlayStation a lot more than Xbox. In 2023 alone, Final Fantasy XVI launched as a PS5 exclusive, while other Square Enix games, like Octopath Traveler 2 and Theatrhythm Final Bar Line, avoided launching on Xbox entirely. That all seems to be changing, though.
Following a reveal at the Final Fantasy XIV Fan Festival in Las Vegas today that the Dawntrail expansion is coming in summer 2024, Head of Xbox Phil Spencer and Square Enix CEO Takashi Kiryu came out on stage to discuss Square Enix's future with Xbox.
First, we learned that Final Fantasy XIV itself is finally coming to Xbox Series X/S with faster loading and 4K support. An open beta test will be held alongside the launch of Patch 6.5x, while a full release is planned for spring 2024.
This partnership is not just for one game, though. "Starting with today's announcement and whenever possible, we are planning to bring our games to Xbox for players to enjoy," Kiryu said while on stage, according to X account Nova Crystallis. This sentiment is reflected in an Xbox Wire post about the port, where Square Enix PR director Luke Karmali states that "this is just the beginning of our journey together."
Final Fantasy XIV is available now for PC, Mac, PS4, and PS5. It comes to Xbox Series X and Xbox Series S in spring 2024.