Embracer Group acquired Square Enix's western divisions in one large deal, but the conglomerate is already shutting down the former Square Enix Montreal studio. Hitman GO developer Onoma, previously known as Square Enix Montreal, was shut down just three weeks after it received the new name under the Embracer Group umbrella.Bloomberg's Jason Schreier reports Onoma has closed its studio doors as Embracer Group shifts its focus to console and PC releases. Onoma's staff were notified of the studio closure during an Embracer Group meeting at 2 p.m. EDT today, November 1. The Onoma closure is cited as a cost-cutting measure according to Bloomberg's sources. Some remaining Onoma staff will move to Eidos Montreal, which remains intact following the acquisition by Embracer Group. Eidos Montreal will take on multiple new projects including a co-developer partnership with Xbox.Alongside the closure of the former Square Enix Montreal studio, Eidos Montreal reportedly canceled one of its unannounced games. Various rumors suggest the canceled project was a Stranger Things-inspired "kids on bikes" game, but many of the details surrounding the title are left up to speculation. Eidos Montreal is moving on to multiple new projects which include a brand-new Deus Ex game, the new Fable game in partnership with Xbox, and an original intellectual property. The Deus Ex game is very early in production, and the new IP was recently rescoped at Eidos Montreal. Further, Eidos Montreal may be working on more Xbox games in the future after Fable as part of a co-developer partnership.
Embracer Group appears to be assessing IPs recently obtained through major acquisitions including Deus Ex, Legacy of Kain, and Tomb Raider. The conglomerate is focusing on console and PC development whereas Onoma focused its efforts on mobile titles like Hitman GO and Deus Ex GO. As a result, Embracer Group chose to close Onoma down and bring its staff into Eidos Montreal to work on new console and PC titles.
Embracer Group is looking to revive fan-favorite IPs that Square Enix did not adapt into modern titles in recent years. For example, Deus Ex: Mankind Divided was released in 2016, and fans have clamored for the return of the futuristic shooter RPG for roughly six years. Embracer Group should help the Onoma staff transition into Eidos Montreal to facilitate development of these new games.
The partnership with Xbox for titles like Fable is another promising sign for the future of Embracer Group and Eidos Montreal. Official word on Fable's gameplay has been lacking for a few years, but Xbox could potentially share some new details at its annual showcase in summer 2023.