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In the latest plan to boost sagging profits at the company, Square Enix president Takashi Kiryu has revealed plans for the publisher to identify existing properties that could be “upgraded to AAA status.”
Kiryu discussed this strategy for shoring up profits during a investor Q&A, held during the company’s financial results briefing meeting in early August.
Square Enix president Takashi Kiryu wants to identify existing IPs that can be ‘upgraded’ to AAA status
As originally reported by VGC, comments from Square Enix president Takashi Kiryu reveal that the company plans to revitalize some of its most promising properties by upgrading them to AAA status.
This strategy to help bolster profits comes as some analysts have expressed concerns about Square Enix’s profitability in the face of a sharp drop in the company’s valuation. According to a report from earlier this month, Square Enix has lost nearly $2 billion in value since the release of Final Fantasy 16 in June.
Kiryu’s remarks, which can be read in an outline available on Square’s investor relations website, come following reports from earlier this year suggesting that the long-awaited Final Fantasy 16 failed to meet Square’s high-end expectations.
Despite these claims to the contrary, Kiryu says that sales of Final Fantasy 16 were “in line with our expectations.” He also announced that Square has plans in the works to boost sales of the game on PS5. Kiryu stated that there is an opportunity for the publisher to boost profits by establishing “greater depth” to its gaming portfolio.
Rather than simply doubling down on its most high-profile franchises, Kiryu believes Square can increase revenue by identifying existing IPs from its portfolio that could be “upgraded” into AAA titles. While it’s unlikely that games like the upcoming Final Fantasy 7 Rebirth will lose their place of prominence in Square’s portfolio anytime soon, Kiryu’s remarks suggest a shift away from what some see as an overreliance on its most iconic properties to drive sales.
Increased investment in some of its lesser-known IPs could help the company turn around its recent sales slump and — at least temporarily — stave off persistent rumors of Sony purchasing Square Enix.