Square Enix was reportedly concerned that Tomb Raider and Deus Ex would ‘cannibalize’ the sales of their Japanese games.

Square Enix has reportedly revealed that the sale of Crystal Dynamics and Eidos Montreal studios was due to concerns that their games would “cannibalize” the rest of the company’s sales. Looking ahead, it also appears that Square Enix might try to sell stakes in some of its studios to improve “capital efficiency” while resources are shifted from US and European studios to Japan.

As shared by MST Financial Senior Analyst David Gibson in Twitter (opens in a new tab)Square Enix delved into the rationale for its decision to sell the Tomb Raider and Deus Ex studios during a recent investor conference call. According to Gibson, the company felt that the pair’s sales would “cannibalize” the sales of the rest of the company, and that selling them would allow Square Enix to improve “capital efficiency”.


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