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Square Enix is rebooting itself, “aggressively” pursuing a multiplatform strategy that includes PlayStation, Xbox, Nintendo, and PC in the process. This comes from the company’s latest financial earnings report, which details Square Enix’s three-year reboot plan for long-term growth.
Within that three-year reboot plan, Square Enix lists four pillars:
- Enhance productivity by optimizing the development footprint in the Digital Entertainment (DE) segment
- Diversify earnings opportunities by strengthening customer contact points
- Roll out initiatives to create additional foundational stability
- Strike a balance between shareholder return and growth investment when allocating capital
As part of this plan, Square Enix “will aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs,” according to the financial report. “Especially, in regards to major franchise and AAA titles including catalog titles, it will build an environment where more customers can enjoy these titles,” it continues, possibly alluding to multiplatform releases for future Final Fantasy games and more.
This strategy switch-up follows reports that Final Fantasy VII Rebirth, a PlayStation 5-exclusive RPG that launched in February underperformed; Final Fantasy VII Rebirth followed in the footsteps of its predecessor, Final Fantasy VII Remake, which launched exclusively on PlayStation 4 in 2020, and Final Fantasy XVI, which hit PS5 last year (although it’s set to release on PC sometime in the future).
Square Enix also says it will “devise a platforms strategy for SD [Smart Devices/PC Browser portfolio] that includes not only iOS and Android, but also the possibility of PC launches. It continues, “Furthermore, the Group will strive to maximize the acquisition of new users when launching a title and that of recurring users after starting management of game operation.”
Throughout the financial report, Square Enix uses the word “fun” as a focal point for the future development of its games. It says it wants to focus on the development of titles “delivering ‘fun’ that only [Square Enix] can create and build.”
In terms of numbers, Square Enix’s net sales are up 3.8% year-over-year at $2.28 billion this year, with digital entertainment sales up 2.5% at $1.59 billion. However, its operating income – $209 million – is down nearly 27%.
These numbers and subsequent strategy shift aren’t surprising, considering at the end of April, Square Enix canceled some of its in-development games to be “more selective and focused,” which lines up with its new philosophy. This likely means we’ll be seeing more titles like Dragon Age XI, Final Fantasy XVI, and Final Fantasy VII Rebirth on various platforms and less games like Foamstars and The DioField Chronicle. Only time will tell, though, and Square Enix thinks it will take three years for this company reboot.
For more, read Game Informer’s Final Fantasy VII Rebirth review, and then read Game Informer’s Final Fantasy XVI review. After that, read about Final Fantasy XIV’s upcoming Dawntrail expansion, which is due out this July.
What are your thoughts on Square Enix’s new strategy?Let us know in the comments below!