Square Enix is losing money, so now it’s changing its strategy. The company, famous for games like Final Fantasy and Dragon Quest, saw profits fall by 15.8% for the year ending March 31, 2024, even though sales went up a bit. This happened after big games like Final Fantasy 16 and Final Fantasy 7 Rebirth came out. Obviously, it may have something to do with Final Fantasy 7 being exclusive to PlayStation.
Square Enix has announced a three-year plan called “Square Enix Reboots, and Awakens.” The plan details a new approach to regain profitability and ensure long-term growth. A major part of this plan involves a shift in platform strategy, with Square Enix moving away from exclusive console releases and focusing on making games available across various platforms, including Nintendo, PlayStation, Xbox, and PCs (thanks, IGN).
The change points to upcoming mainline Final Fantasy games, traditionally associated with PlayStation exclusivity agreements, which will now be accessible on a broader array of gaming systems. While details beyond the recently confirmed PC release of Final Fantasy 16 have not been shown to the media, the company intends to create a platform where a wider audience can experience their games, including major franchises, AAA titles, and older games.
This is the PlayStation thing I was talking about before. The company tends to favor PlayStation over Microsoft, and while that gives a nice relationship, it can hurt the overall sales. It seems to have reached a point where the extra marketing they get from Sony isn’t giving them enough sales. The quote I want to highlight below shows how they’re now going outside their regular PlayStation-exclusive zone.
“Aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs. Build an environment where more customers can enjoy our titles in regards to major franchises and AAA titles including catalog titles.”
Square Enix
Square Enix has admitted that certain recent game releases, including major titles, did not meet the expected financial performance (Final Fantasy 7 Rebirth). The company intends to focus on creating high-quality games rather than focusing on quantity in future projects. As part of this strategy, Square Enix may adjust the timing of major game launches to guarantee an enjoyable experience for players. This approach could help address concerns about excessive Final Fantasy releases within a short timeframe.
The financial report also states that “content abandonment losses” amounted to ¥22.1 billion (approximately $140.9 million) before the report was issued. No specific information about the projects that were canceled or revised was provided.
Looking to the future, Square Enix has several projects coming up. These include the next expansion for Final Fantasy 14, Kingdom Hearts 4, the last part of the Final Fantasy 7 remake trilogy, and Dragon Quest 12. There’s a lot that they’re doing that should work out.
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