Square Enix Holdings Co., Ltd. SQNXF has experienced a substantial loss of almost $2 billion in value since the release of "Final Fantasy 16" in June.
The Japanese company's shares have dropped by nearly 30% since the game's launch, hitting their lowest point since May of the previous year.
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While "Final Fantasy 16" initially sold three million copies during its launch week, there were debates about whether it met Square Enix's sales targets.
Despite this, Square Enix insisted that sales were "extremely strong" and that the game had performed well relative to the PS5 install base. Sales of the game have slowed since then, but it is not considered a complete disaster, the company told IGN.
In dialogue with Bloomberg, analysts attributed this decline to the game's inability to compensate for previous underperforming titles like "Marvel's Avengers" and "Forspoken," as well as mobile games that were quickly shut down after launch.
The root of the problem, as per Bloomberg's sources, lies in the fact that producers had too much control over project scope and direction, leading to unexpected shifts in project goals and quality issues
Square Enix's new CEO, Takashi Kiryu, plans to shift the company's focus towards big-budget games to have a more significant impact on its financial performance.
In the pipeline, Square Enix has several upcoming games, including "Final Fantasy 7 Rebirth," "Star Ocean: The Second Story R," "Foamstars," and the expansion Dawntrail for "Final Fantasy 14."
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