Square Enix today explained its reasoning for selling off Crystal Dynamics, Eidos Montreal, and Square Enix Montreal to Embracer Group.

Embracer Group grew a bit larger this morning when it announced its deal with Square Enix. For about $300 million, Embracer acquired three studios, a trove of class IP (i.e. Tomb Raider, Deus Ex, etc.), more than 50 titles in Square Enix's back catalogue, and 1,100 employees. As to why Square Enix wanted to part with its western studios, there are a handful of reasons.

In the company's execution of share transfer agreement with change to subsidiaries document, Square Enix said the sale will help them more efficiently allocate resources across their core businesses and digital entertainment domain. That likely means more resources for their core franchises like Final Fantasy, Kingdom Hearts, and Dragon Quest among others. More sinisterly, the acquisition will allow the publisher to invest in blockchain, AI, and the cloud. While western publishers appear to be moving away from the controversial blockchain, Square Enix president Yosuke Matsuda has spent months showcasing his interest.

While Square Enix did sell Embracer a trove of IP, they didn't get rid of every western developed title. In addition to its Japan studios, the company retains its External Studios and Collective labels. They'll continue publishing franchises such as Just Cause, Outriders, and Life is Strange.

Square Enix currently has a slew of games currently in development. These include Final Fantasy XVI, Kingdom Hearts IV, Forspoken, and Dragon Quest XII among others.