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Square Enix Wiki2Web Clarity Challenge

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Study Guide: Square Enix: Corporate History and Business Strategy

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Square Enix: Corporate History and Business Strategy Study Guide

Origins and Early Development (Square & Enix)

Enix was founded by Masafumi Miyamoto in 1975, initially focusing on game development.

Answer: False

Explanation: Enix was founded by Yasuhiro Fukushima in 1975 and initially focused on publishing games, often partnering with developers, rather than direct game development.

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The *Dragon Quest* series became Enix's most profitable franchise, with its first game, *Dragon Warrior*, selling 1.5 million copies in Japan.

Answer: True

Explanation: The *Dragon Quest* series, with its first installment *Dragon Warrior* selling 1.5 million copies in Japan, indeed became Enix's most profitable franchise.

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Square decided to develop titles for the Nintendo 64 over the Sony PlayStation due to the Nintendo 64's superior cartridge-based technology.

Answer: False

Explanation: Square shifted its development focus from the Nintendo 64 to the Sony PlayStation due to the cheaper development costs associated with CD-based consoles, not the Nintendo 64's cartridge technology.

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Who founded Enix, and in what year was it established?

Answer: Yasuhiro Fukushima in 1975

Explanation: Enix was founded on September 22, 1975, by Yasuhiro Fukushima.

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What was Enix's primary business focus before its merger with Square?

Answer: Publishing games, often partnering with developers

Explanation: Before its merger with Square, Enix primarily focused on publishing games, frequently collaborating with external developers.

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What inspired Square's creation of the *Final Fantasy* series in 1987?

Answer: Enix's success in the RPG genre with *Dragon Quest*

Explanation: Square's creation of the *Final Fantasy* series in 1987 was directly inspired by Enix's significant success in the RPG genre with its *Dragon Quest* series.

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Why did Square decide to develop titles for the Sony PlayStation instead of the Nintendo 64?

Answer: Cheaper development costs of CD-based consoles.

Explanation: Square opted for the Sony PlayStation over the Nintendo 64 primarily due to the lower development costs associated with CD-based consoles.

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The 2003 Merger and Corporate Evolution

The original Square Enix Co., Ltd. was formed in 2003 through a merger where Square Co., Ltd. was the surviving entity.

Answer: False

Explanation: The original Square Enix Co., Ltd. was formed in April 2003, but Enix was the surviving company in the merger, meaning Square Co., Ltd. was dissolved.

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Following the 2003 merger, Yoichi Wada, former Square president, became the president of the new Square Enix corporation.

Answer: True

Explanation: After the 2003 merger, Yoichi Wada, who was the former president of Square, was indeed appointed as the president of the newly formed Square Enix corporation.

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Square Enix reorganized itself as a holding company in October 2008, with its domestic video game operations becoming a subsidiary.

Answer: True

Explanation: In October 2008, Square Enix reorganized into a holding company structure, with Square Enix Holdings Co., Ltd. as the parent and Square Enix Co., Ltd. handling domestic video game operations as a subsidiary.

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Enix was initially hesitant about merging with Square in 2001 due to the financial success of Square's movie, *Final Fantasy: The Spirits Within*.

Answer: False

Explanation: Enix was hesitant about the merger in 2001 due to the *financial failure* of Square's movie, *Final Fantasy: The Spirits Within*, which caused Square to lose money.

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The primary reason announced for the Square and Enix merger in 2002 was to expand into the film industry.

Answer: False

Explanation: The primary reason announced for the Square and Enix merger in 2002 was to decrease game development costs and enhance their ability to compete globally, not to expand into the film industry.

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Masafumi Miyamoto's concerns about the 2003 merger were resolved by decreasing the exchange ratio of Enix shares for Square shares.

Answer: False

Explanation: Masafumi Miyamoto's concerns were resolved by *increasing* the exchange ratio of Enix shares for Square shares, from 0.81 to 0.85, to address his ownership percentage.

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Takashi Kiryu succeeded Yosuke Matsuda as President and Representative Director of Square Enix Holdings in 2023.

Answer: True

Explanation: Takashi Kiryu, a former director, succeeded Yosuke Matsuda as President and Representative Director of Square Enix Holdings in May 2023.

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After the 2003 merger, Square Enix's development department was organized into ten Product Development Divisions, all based in Tokyo.

Answer: False

Explanation: After the 2003 merger, Square Enix's development department was organized into eight Square and two Enix Product Development Divisions, which were spread across various offices, including Osaka and Tokyo, not solely in Tokyo.

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DigiCube, Square Co. Ltd.'s marketing and distribution subsidiary, was dissolved in 2003 after the Square Enix merger.

Answer: True

Explanation: DigiCube, Square Co. Ltd.'s marketing and distribution subsidiary, was indeed dissolved on November 26, 2003, shortly after the Square Enix merger.

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Square Electronic Arts was a joint venture between Square Co. Ltd. and Electronic Arts that remained active after the 2003 Square and Enix merger.

Answer: False

Explanation: Square Electronic Arts, a joint venture between Square Co. Ltd. and Electronic Arts, was dissolved on April 1, 2003, coinciding with the Square and Enix merger.

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When was the original Square Enix Co., Ltd. formed through the merger of Square and Enix?

Answer: April 2003

Explanation: The original Square Enix Co., Ltd. was formed in April 2003 through the merger of Square and Enix.

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In the 2003 merger between Square and Enix, which company was the surviving entity?

Answer: Enix Corporation

Explanation: In the 2003 merger that formed Square Enix, Enix Corporation was the surviving entity, and Square Co., Ltd. was dissolved.

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What was the final stock exchange ratio for each share of Square's common stock during the 2003 merger with Enix?

Answer: 0.85 shares of Enix

Explanation: During the 2003 merger, each share of Square's common stock was exchanged for 0.85 shares of Enix's common stock, a ratio adjusted to address shareholder concerns.

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Who became the vice president of the new corporation immediately following the 2003 merger of Square and Enix?

Answer: Keiji Honda

Explanation: Following the 2003 merger, former Enix president Keiji Honda was appointed as the vice president of the new Square Enix corporation.

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In what year did Square Enix reorganize itself as a holding company, forming Square Enix Holdings Co., Ltd.?

Answer: 2008

Explanation: Square Enix reorganized itself as a holding company, forming Square Enix Holdings Co., Ltd., in October 2008.

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What financial event in 2001 made Enix hesitant about merging with Square?

Answer: The financial failure of Square's movie *Final Fantasy: The Spirits Within*.

Explanation: Enix's initial hesitation to merge with Square in 2001 stemmed from the financial failure of Square's movie, *Final Fantasy: The Spirits Within*, which resulted in significant losses for Square.

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What was the primary reason announced for the Square and Enix merger in November 2002?

Answer: To decrease game development costs and enhance global competition.

Explanation: The primary stated reason for the Square and Enix merger in November 2002 was to reduce game development costs and improve their competitive standing in the global market.

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How were Masafumi Miyamoto's concerns about his percentage of ownership in the merged company resolved?

Answer: The exchange ratio of the merger was altered, increasing Enix shares for Square shares.

Explanation: Masafumi Miyamoto's concerns regarding his ownership percentage were addressed by adjusting the merger's exchange ratio, specifically by increasing the number of Enix shares exchanged for each Square share.

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Who succeeded Yosuke Matsuda as President and Representative Director of Square Enix Holdings in May 2023?

Answer: Takashi Kiryu

Explanation: Takashi Kiryu succeeded Yosuke Matsuda as President and Representative Director of Square Enix Holdings in May 2023.

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Which former Square Enix subsidiary was a joint venture between Square Co. Ltd. and Electronic Arts for American publishing?

Answer: Square Electronic Arts

Explanation: Square Electronic Arts was a joint venture between Square Co. Ltd. and Electronic Arts, established for American publishing before its dissolution in 2003.

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Global Operations and Subsidiary Structure

Square Enix Holdings Co., Ltd. is primarily known for its extensive film production studio and theme park operations.

Answer: False

Explanation: Square Enix Holdings Co., Ltd. is primarily known as a video game publisher and entertainment conglomerate, with business activities including merchandise, arcade facilities, and manga publication, not extensive film production or theme park operations.

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The 'Square Enix Extreme Edges' label was created in 2010 for Japanese games with CERO restrictions, indicating mature content.

Answer: False

Explanation: The 'Square Enix Extreme Edges' label was created in 2010 specifically for *Western* games bearing CERO restrictions in Japan, not for Japanese games.

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Square Enix's corporate structure includes a dedicated publishing business unit for manga and books, and a blockchain business division.

Answer: True

Explanation: Square Enix's corporate structure indeed includes a dedicated publishing business unit for manga and books, as well as a blockchain business division, among other units.

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Gangan Comics is Square Enix's manga publishing division, and *Fullmetal Alchemist* is its most successful title.

Answer: True

Explanation: Gangan Comics is Square Enix's manga publishing division, and *Fullmetal Alchemist* is its most successful title, having sold over 64 million volumes worldwide.

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The 'Square Enix Cafe' establishments are located exclusively in Tokyo, Japan.

Answer: False

Explanation: The 'Square Enix Cafe' establishments are located in Tokyo, Osaka, and Shanghai, not exclusively in Tokyo.

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Square Enix, Inc. is the American publishing and Japanese Intellectual Property localization subsidiary, originally known as Square Soft Inc.

Answer: True

Explanation: Square Enix, Inc. serves as the American publishing and Japanese IP localization subsidiary, and its original name was Square Soft Inc.

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Visual Works merged with the Image Arts Division in 2021 to form the new Square Enix Image Studio Division.

Answer: True

Explanation: Visual Works merged with the Image Arts Division on April 1, 2021, to establish the new Square Enix Image Studio Division, focusing on CGI animation and movie productions.

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What is the full official name of the company known as Square Enix?

Answer: Square Enix Holdings Co., Ltd.

Explanation: The full official name of the company is Square Enix Holdings Co., Ltd., reflecting its structure as a multinational holding company.

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Which of the following is NOT listed as a primary business activity of Square Enix Holdings Co., Ltd.?

Answer: Large-scale theme park operation

Explanation: Square Enix Holdings Co., Ltd.'s primary business activities include video game publishing and development, merchandise, arcade facilities, and manga publication, but not large-scale theme park operations.

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Where are Square Enix's global headquarters located?

Answer: Shinjuku, Tokyo, Japan

Explanation: Square Enix's global headquarters are situated in the Shinjuku Eastside Square Building in Shinjuku, Tokyo, Japan.

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What was the purpose of the 'Square Enix Extreme Edges' label announced in April 2010?

Answer: To publish Western games with CERO restrictions in Japan.

Explanation: The 'Square Enix Extreme Edges' label, launched in April 2010, was specifically created to publish Western games with CERO restrictions in the Japanese market.

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Which of the following is NOT one of the industries into which Square Enix's corporate structure is divided?

Answer: A heavy machinery manufacturing division

Explanation: Square Enix's corporate structure includes Creative Business Units, publishing for manga/books, a digital storefront, media/arts, and a blockchain division, but not a heavy machinery manufacturing division.

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What is Gangan Comics?

Answer: Square Enix's manga publishing division in Japan.

Explanation: Gangan Comics is Square Enix's manga publishing division in Japan, responsible for titles like *Fullmetal Alchemist*.

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Which of the following is NOT a popular mascot frequently featured in Square Enix merchandise, according to the source?

Answer: Pikachu

Explanation: Popular mascots frequently featured in Square Enix merchandise include the Chocobo and the Slime character. Pikachu is not a Square Enix mascot.

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What is the primary role of the Square Enix Image Studio Division, established in 2021?

Answer: Producing cutscenes and movie productions

Explanation: The Square Enix Image Studio Division, formed in 2021, primarily focuses on producing CGI animation for cutscenes and movie productions.

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What was the original name of Square Enix, Inc., the American publishing subsidiary?

Answer: Square Soft Inc.

Explanation: Square Enix, Inc., the American publishing and IP localization subsidiary, was originally known as Square Soft Inc.

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Core Franchises and Game Production

After 2020, the *Kingdom Hearts* franchise sold more copies worldwide than *Final Fantasy*.

Answer: False

Explanation: After 2020, *Final Fantasy* sold 173 million copies worldwide, while *Kingdom Hearts* shipped 36 million units, indicating *Final Fantasy* had significantly higher sales.

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Studio Istolia and its *Project Prelude Rune* were canceled after Hideo Baba's departure, with staff reassigned to other projects.

Answer: True

Explanation: Following Hideo Baba's departure in early 2019, Studio Istolia was closed and *Project Prelude Rune* was canceled, with its staff reassigned to other internal projects.

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Luminous Productions was merged internally with Square Enix Co., Ltd. in May 2023 to enhance the group's capabilities in developing HD games.

Answer: True

Explanation: Luminous Productions was indeed merged internally with Square Enix Co., Ltd. in May 2023, with the stated goal of enhancing the group's HD game development capabilities.

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Creative Business Unit I, led by Yu Miyake, focuses on the *Dragon Quest* and *Nier* series.

Answer: False

Explanation: Creative Business Unit I is led by Yoshinori Kitase and focuses on *Final Fantasy* single-player titles, *SaGa*, and *Kingdom Hearts*. Creative Business Unit II, led by Yu Miyake, focuses on *Dragon Quest* and *Nier*.

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Creative Studio III, led by Naoki Yoshida, primarily focuses on MMORPGs but expanded into single-player titles with *Final Fantasy XVI*.

Answer: True

Explanation: Creative Studio III, under Naoki Yoshida, is known for MMORPGs and expanded its portfolio to include single-player titles such as *Final Fantasy XVI*.

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The *Final Fantasy* franchise is Square Enix's best-selling property, with over 173 million units sold worldwide as of March 2022.

Answer: True

Explanation: As of March 2022, the *Final Fantasy* franchise holds the record as Square Enix's best-selling property, with over 173 million units sold globally.

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*Final Fantasy VII* claimed the number 1 position in *Famitsu* magazine's 2006 'Top 100 Games Ever.'

Answer: False

Explanation: In *Famitsu* magazine's 2006 'Top 100 Games Ever,' *Final Fantasy X* claimed the number 1 position, not *Final Fantasy VII*.

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Square Enix developed the Crystal Tools engine in 2004 to be exclusively compatible with PlayStation 3.

Answer: False

Explanation: The Crystal Tools engine, developed by Square Enix in 2004, was designed for cross-platform compatibility with PlayStation 3, Xbox 360, Windows-based PCs, and to some extent, the Wii.

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The Luminous Engine was developed in tandem with *Final Fantasy XV*, allowing for simultaneous optimization.

Answer: True

Explanation: The Luminous Engine was developed concurrently with *Final Fantasy XV*, enabling the game's production to facilitate the engine's optimization.

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Which major role-playing game franchise is NOT primarily associated with Square Enix according to the source?

Answer: The Elder Scrolls

Explanation: Square Enix is primarily associated with *Final Fantasy*, *Dragon Quest*, and *Kingdom Hearts*. *The Elder Scrolls* is not listed as one of its core franchises.

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As of after 2020, what were the worldwide sales figures for the *Dragon Quest* franchise?

Answer: 85 million copies

Explanation: After 2020, the *Dragon Quest* franchise had sold 85 million copies worldwide, as reported in the sales figures.

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Which of the following individuals was NOT mentioned as a key member of the *Dragon Quest* development staff?

Answer: Hironobu Sakaguchi

Explanation: The key members of the *Dragon Quest* development staff mentioned were Koichi Nakamura, Yuji Horii, Akira Toriyama, and Koichi Sugiyama. Hironobu Sakaguchi was not listed.

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What was the specific purpose of the 'Tokyo RPG Factory' studio created by Square Enix in 2015?

Answer: To develop *Project Setsuna*, focusing on traditional RPGs.

Explanation: The 'Tokyo RPG Factory' studio was established by Square Enix in 2015 with the specific goal of developing *Project Setsuna*, emphasizing traditional role-playing game design.

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What was the '1st Production Department' responsible for until 2013?

Answer: The *Final Fantasy* and *Kingdom Hearts* series

Explanation: Until 2013, the '1st Production Department' was responsible for the development of the *Final Fantasy* and *Kingdom Hearts* series.

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Who leads Creative Business Unit I, which focuses on *Final Fantasy* single-player titles, *SaGa*, and *Kingdom Hearts*?

Answer: Yoshinori Kitase

Explanation: Creative Business Unit I, responsible for *Final Fantasy* single-player titles, *SaGa*, and *Kingdom Hearts*, is led by Yoshinori Kitase.

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Creative Business Unit II, led by Yu Miyake, focuses on which of the following series?

Answer: Dragon Quest, Nier, Octopath Traveler, and Bravely series

Explanation: Creative Business Unit II, under the leadership of Yu Miyake, focuses on the *Dragon Quest*, *Nier*, *Octopath Traveler*, and *Bravely* series, as well as arcade games.

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According to Taku Murata, what is the first step in Square Enix's standard game design model?

Answer: Establishing the plot, characters, and art

Explanation: Taku Murata states that the initial step in Square Enix's standard game design model is to establish the plot, characters, and art of the game.

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Which *Final Fantasy* game claimed the number 1 position in *Famitsu* magazine's 2006 'Top 100 Games Ever'?

Answer: Final Fantasy X

Explanation: In *Famitsu* magazine's 2006 'Top 100 Games Ever,' *Final Fantasy X* was ranked as the number 1 game.

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What was the name of the game engine developed by Square Enix in 2004 for cross-platform compatibility with consoles like PlayStation 3 and Xbox 360?

Answer: Crystal Tools

Explanation: The game engine developed by Square Enix in 2004 for cross-platform compatibility, including PlayStation 3 and Xbox 360, was named Crystal Tools.

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Strategic Business Initiatives and Financial Performance

Square Enix acquired mobile application developer UIEvolution in 2004 and has maintained it as its primary internal mobile studio ever since.

Answer: False

Explanation: Square Enix acquired UIEvolution in 2004 but sold it in 2007, subsequently founding its own MobileStudio in 2008 to focus on internal mobile product development.

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Following the 2013 restructuring, Yosuke Matsuda suggested a business model with more frequent customer interactions, citing Kickstarter as an example.

Answer: True

Explanation: After the 2013 restructuring, President Yosuke Matsuda proposed a business model emphasizing more frequent customer interactions, using Kickstarter as an illustrative example.

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Square Enix's mobile studio 'Smileworks' in Indonesia successfully developed games for various smartphone platforms until its closure in 2015.

Answer: True

Explanation: Square Enix's mobile studio 'Smileworks' in Indonesia did develop games for iOS, Android, Windows Phone, and Nokia smartphones before its closure in January 2015.

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President Yosuke Matsuda clarified that funds from the Embracer Group sale would be used solely for blockchain investments.

Answer: False

Explanation: President Yosuke Matsuda clarified that the funds from the Embracer Group sale would be used to strengthen the company's core games business, not solely for blockchain investments.

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In March 2024, Square Enix announced a significant loss due to content abandonment and a decision to be more selective with game development.

Answer: True

Explanation: In March 2024, Square Enix reported a loss of ¥22.1 billion due to content abandonment, stemming from a strategic decision to be more selective in game development.

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Square Enix's 'polymorphic content' business model limits franchises to a single gaming platform to ensure quality control.

Answer: False

Explanation: Square Enix's 'polymorphic content' business model involves developing franchises across multiple media platforms, not limiting them to a single gaming platform.

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PlayOnline was a cloud-based arcade system introduced by Taito in 2010.

Answer: False

Explanation: PlayOnline was a cross-platform internet gaming platform and service developed by Square Enix, heavily utilized by *Final Fantasy XI*, not a cloud-based arcade system by Taito.

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Square Enix's cloud gaming platform 'CoreOnline' was canceled due to limited commercial take-up.

Answer: True

Explanation: Square Enix's cloud gaming platform 'CoreOnline' was indeed canceled in 2013 due to 'limited commercial take-up' after its launch.

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Shinra Technologies, a cloud gaming company created by Square Enix, was successfully acquired by a major tech firm in 2016.

Answer: False

Explanation: Shinra Technologies, a cloud gaming company created by Square Enix, was closed in January 2016, rather than being successfully acquired.

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Who replaced Yoichi Wada as president of Square Enix in March 2013?

Answer: Yosuke Matsuda

Explanation: Yosuke Matsuda succeeded Yoichi Wada as president of Square Enix in March 2013, following a major company restructuring.

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What initiative did Square Enix launch in 2014 to support indie developers?

Answer: Square Enix Collective

Explanation: In 2014, Square Enix launched 'Square Enix Collective,' an initiative designed to provide support services for independent game developers.

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What was the primary clarification made by President Yosuke Matsuda regarding the use of funds from the Embracer Group sale?

Answer: The funds would be used to strengthen the company's core games business.

Explanation: President Yosuke Matsuda clarified that the funds from the Embracer Group sale would primarily be allocated to strengthening Square Enix's core games business, rather than exclusively for blockchain investments.

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What was the financial impact of Square Enix's decision in March 2024 to be more selective with game development and cancel numerous unannounced titles?

Answer: A loss of ¥22.1 billion

Explanation: Square Enix's decision in March 2024 to be more selective with game development and cancel unannounced titles resulted in a significant loss of ¥22.1 billion due to 'content abandonment'.

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What is Square Enix's business model concept of 'polymorphic content'?

Answer: Developing franchises across multiple media platforms.

Explanation: Square Enix's 'polymorphic content' business model involves expanding franchises across various media platforms to maximize their potential and reach.

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What was Square Enix's first game released for the iPod?

Answer: Song Summoner: The Unsung Heroes

Explanation: Square Enix's first game released for the iPod was *Song Summoner: The Unsung Heroes* in 2008, marking its early entry into mobile gaming.

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Which Square Enix game heavily utilized the PlayOnline cross-platform internet gaming platform?

Answer: Final Fantasy XI

Explanation: *Final Fantasy XI* heavily utilized PlayOnline, Square Enix's cross-platform internet gaming service, being ported to multiple consoles and PC.

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What was the outcome of Square Enix's cloud gaming platform 'CoreOnline'?

Answer: It was canceled due to 'limited commercial take-up.'

Explanation: Square Enix's cloud gaming platform 'CoreOnline' was canceled in 2013 due to 'limited commercial take-up,' failing to achieve widespread adoption.

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International Expansion and Divestments

Square Enix acquired the British game publisher Eidos plc in 2009, which was then integrated into its European branch.

Answer: True

Explanation: Square Enix acquired Eidos plc in 2009, and its publishing arm, Eidos Interactive, was subsequently absorbed into Square Enix's European branch.

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In May 2022, Square Enix sold its *Life Is Strange* and *Just Cause* franchises to Embracer Group as part of a major divestment.

Answer: False

Explanation: In May 2022, Square Enix retained the *Life Is Strange* and *Just Cause* franchises, while other IPs like *Deus Ex* and *Tomb Raider* were sold to Embracer Group.

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IO Interactive, a former Square Enix Europe subsidiary, was sold to Embracer Group in 2017, along with the *Hitman* IP.

Answer: False

Explanation: IO Interactive was sold to its management through a management buyout in 2017, and the *Hitman* IP was transferred to the studio, not sold to Embracer Group.

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Crystal Dynamics, Eidos Montréal, and Studio Onoma were sold to Embracer Group in August 2022.

Answer: True

Explanation: Crystal Dynamics, Eidos Montréal, and Studio Onoma were indeed among the game development subsidiaries sold to Embracer Group in August 2022.

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Which arcade corporation, known for *Space Invaders*, did Square Enix acquire in 2005?

Answer: Taito

Explanation: In 2005, Square Enix acquired Taito, the arcade corporation famous for titles such as *Space Invaders*.

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Which of the following studios was NOT part of the divestment to Embracer Group in May 2022?

Answer: Luminous Productions

Explanation: Crystal Dynamics, Eidos-Montréal, and Square Enix Montreal (Studio Onoma) were sold to Embracer Group in May 2022. Luminous Productions was not part of this divestment; it was later merged internally with Square Enix Co., Ltd.

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Which three game development subsidiaries were sold to Embracer Group in August 2022?

Answer: Crystal Dynamics, Eidos Montréal, and Studio Onoma

Explanation: Crystal Dynamics, Eidos Montréal, and Studio Onoma were the three game development subsidiaries sold to Embracer Group in August 2022.

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