Can the franchise recover some of its standing?
Sept. 18, 2024 - Square Enix has released a financial results briefing that was held on May 13, and those results come as a blow to fans of the prestigious JRPG franchise. Stating "profits did not meet our expectations," Takashi Kiryu, president and representative director of Square Enix lamented the lack of growth in their Digital Entertainment segment.
Focusing on their HD games sub-segment specifically, Kiryu continued "The HD Games sub-segment failed to better its profitability, posting operating losses in every year of our previous medium-term plan. In addition to this, we did not manage our title portfolio across the company as well as we could have, which I believe resulted in opportunity losses due to cannibalization between our own titles."
Final Fantasy XVI had an excellent DLC come out earlier this year.
With Final Fantasy XVI and VII Rebirth releasing only around half a year apart, Kiryu believes the games may have stepped on one another, but Square is taking steps to address this. "In the case of the HD Game sub-segment, sales of individual games will remain the key variable, but we believe that we will be able to exercise some degree of control over that volatility by carefully curating our pipeline over the next three years,” Kiryu assured investors.
Kiryu said, “By also working steadily to improve our profitability, we intend to offset the weakness in SD games to achieve overall profitability.” Kiryu also mentioned a shift to a multiplatform strategy as part of their effort to increase profitability. With Final Fantasy XVI's release on Steam on Sept. 17, 1024, final numbers are still in flux.
Final Fantasy VII Rebirth released earlier this year to critical acclaim.
Both Final Fantasy XVI and VII Rebirth were excellent entries in the series, but it seems that quality did not translate to sales. You can read our write up on Final Fantasy VII Rebirth here, and our review of the Final Fantasy XVI DLC The Rising Tide here.
Square Enix has a lot of games on the docket over the next few years, but questions remain on what direction their flagship series will take moving forward. Profitability is obviously their main concern, but how will they balance those decisions with the creativity and quality the series has exemplified over the last 37 years? Time will tell, but you can be sure Square will continue to find ways to make Final Fantasy a prestige IP.
Kiryu continued, "Engaging with content can move us. This is a sensation that, with the passage of time, forms unforgettable memories that help shape the values that ground us. It is our belief that this chain of events enriches our lives. We arrived at the conclusion that continuing to deliver content that can provide our customers with unforgettable memories that enrich their lives is our Group’s mission and reason for being."
Image Credits: Square Enix
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