Square Enix Commits To 'Aggressively Pursue Multiplatform Strategy' To Combat Profit Dip

Zinger Key Points
  • Square Enix announced a major company reboot due to profit decline despite increased sales.
  • The plan involves a shift to multiplatform strategy and a focus on quality over quantity in game releases.

Square Enix Holdings Co SQNXF is undergoing a company-wide reboot in response to a notable profit dip, despite a slight uptick in sales in the Digital Entertainment segment.

The company reported a ¥8.1 billion (approximately $51.9 million) operating loss in the HD games subcategory, particularly with PlayStation 5-exclusive titles like Final Fantasy 16 and Final Fantasy 7 Rebirth.

Specifics on Final Fantasy 7 Rebirth’s sales figures weren’t disclosed. Square Enix acknowledged the challenge in achieving profitability. The company suffered from an “incomplete journey to better profitability in HD game development’.”

See Also: Square Enix Set For Game Development Revamp Post-Final Fantasy 16: Quality Upgrade By Spring 2024?

The company also admitted that some titles “failed to live up to profit expectations, especially outsourced titles and some AAA titles.”

To counter these setbacks, Square Enix introduced a three-year strategy called “Square Enix Reboots, and Awakens,” aiming for platform diversification.

Square Enix announced it would "aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs."

Additionally, it stated it would “build an environment where more customers can enjoy our titles in regards to major franchises and AAA titles, including catalog titles.”

While suggesting a move away from PlayStation exclusivity for mainline Final Fantasy games, they haven’t provided specific details beyond the upcoming PC launch of Final Fantasy 16.

Furthermore, Square Enix said they would make a shift from quantity to quality, promising to deliver “ensured fun.” They suggested a more spaced-out release schedule for major Final Fantasy titles.

In terms of financial challenges, Square Enix revealed it had absorbed ¥22.1 billion (approx $140.9 million) in “content abandonment losses” before the May 13 financial report. The company did not disclose the titles affected by these losses.

Looking ahead, Square Enix has several projects in the pipeline. These include the launch of Dawntrail, an expansion for the ongoing MMO Final Fantasy 14, scheduled for late June. Kingdom Hearts 4, the third game in the Final Fantasy remake trilogy, and Dragon Quest 12 are currently in development.

Read Next: Can Square Enix Recover $2B Value Drop After ‘Final Fantasy 16’ Release?

Image credits: Tada Images on Shutterstock.

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