Square Enix Announces Strategy Shift Amidst Financial Shortfall with Final Fantasy
Despite receiving critical acclaim, Final Fantasy VII Rebirth has fallen short of Square Enix’s sales expectations. This news came as part of a broader announcement earlier this month, revealing that the company’s key financial performance indicators were significantly lower than analysts had projected.
The sales disappointment extends beyond FFVII Rebirth. Square Enix also reported that Final Fantasy XVI and Foamstars did not achieve their forecasted sales targets. According to Bloomberg, the company’s operating income of 32.5 billion yen marks a 26.6% decrease from 2023. Square Enix had projected an overall operating income of 40 billion yen, far below the 57 billion yen average analyst projection.
In response to these challenges, Square Enix announced a strategic shift. The company plans to adopt a multiplatform approach, moving away from its previous strategy of releasing games exclusively on PlayStation consoles. President Takashi Kiryu emphasized a new focus on quality over quantity, indicating that the company would cut projects unlikely to be profitable. However, he noted that it would take time for these changes to produce results, stating, “our winning formula is no longer effective.”
In GameSpot’s review of Final Fantasy VII Rebirth, critic Tamoor Hussain praised the game’s combat and character development but critiqued some of its narrative complexities. “As a game that has the unenviable task of living up to one of the strongest legacies in the medium, it is a worthy second chapter,” Hussain wrote. “Whether Square Enix can bring it all together in the third and final part will be the subject of much discussion from here on out. Just like at Destiny’s Crossroads, an unknown future beckons once again, and anything is still possible.”
Square Enix’s announcement highlights a pivotal moment for the company as it adapts to changing market conditions and seeks to realign its strategy for future success.