Square Enix Reportedly Lost $200 Million on Avengers and Guardians of the Galaxy

The two Marvel games lost Square Enix $200 million in a little under two years and were responsible for the sale of western studios to Embracer, according to an analyst.

Posted By | On 03rd, May. 2022

marvel's guardians of the galaxy

There’s a lot to unpack in the recent announcement that the Embracer Group is acquiring Square Enix’s North American studios and IPs, especially given the involvement of studios like Crystal Dynamics and Eidos Montreals and the IPs that are traditionally attached to them, from Tomb Raider to Deus Ex. One thing in particular that has caught the attention of many, however, is the fact that the whole deal costs $300 million, which, given the magnitude of the deal and the names attached, seems shockingly low.

But it would seem that, given the losses Square Enix has incurred due to its western output in recent years, the price starts making more sense. In fact, taking recently to Twitter, industry analyst David Gibson stated that the primary reason Square Enix accepted the price for the deal was the Marvel license.

Since 2020, Square Enix has openly talked about the commercial underperformance of both Marvel’s Avengers and Marvel’s Guardians of the Galaxyincluding the heavy financial losses brought about by the former’s failure in particular, and according to Gibson, the two have collectively led to losses of $200 million in under two years for Square Enix.

Even so, as Gibson points out as well, considering the potential of the IPs attached to the two studios and the upcoming AAA games that are in the works at both Eidos Montreal and Crystal Dynamics (with the latter confirmed to be working on a new Tomb Raider game), the price seems significantly lower than expected.

One would think that the mega-successful Tomb Raider franchise in and of itself would enough to drive up that number significantly. Add to that the fact that Square Enix is using the money from this deal to invest in blockchain, of all things, and the deal becomes even more baffling.


Amazing Articles You Might Want To Check Out!

Keep On Reading!

Mistfall Hunter Kicks Off Second Closed Beta

Mistfall Hunter Kicks Off Second Closed Beta

The second beta for Mistfall Hunter will take place for more than two weeks, with servers available in the US ...

South of Midnight Was the 9th Most Played Game on Xbox in its Launch Week

South of Midnight Was the 9th Most Played Game on Xbox in its Launch Week

South of Midnight made quite an impact when it came out, sitting between two popular multiplayer titles in num...

Days Gone Graphical Improvements Detailed Ahead of Remastered Release

Days Gone Graphical Improvements Detailed Ahead of Remastered Release

The update will improve world graphics, introduce new atmospheric/sky simulations, and accurately depict sunli...

The Elder Scrolls 4: Oblivion Remastered Will Shadow Drop Today – Rumor

The Elder Scrolls 4: Oblivion Remastered Will Shadow Drop Today – Rumor

The Unreal Engine 5 remaster will allegedly be available for Xbox Series X/S, PS5, and PC alongside Game Pass ...

Top 30 Best Games of All Time (2025 Edition)

Top 30 Best Games of All Time (2025 Edition)

These titles are defined by their unforgettable stories and characters, stellar world-building and design, imp...

Mandragora: Whispers of the Witch Tree Review – Room to Grow

Mandragora: Whispers of the Witch Tree Review – Room to Grow

An incredible aesthetic and solid combat make for a surprisingly solid Metroid-style Souls-like, with room for...