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Square Enix has reportedly revealed that it sold Crystal Dynamics and Eidos Montreal out of concern that their games would “cannibalize” sales from the rest of the company. Going forward, it seems likely that Square Enix may also sell some of its studio stakes to improve “capital efficiency” while resources are being moved from US and European studios to Japan.

As David Gibson, senior analyst at MST Financial Twitter (opens in new tab), Square Enix further explored its rationale for its decision to sell Tomb Raider and Deus Ex there during a recent investor call. According to Gibson, the company believes the couple’s sales will “cannibalize” sales in the rest of the company, and selling them will allow Square Enix to be “capitally efficient.”





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