Embracing a New Beginning.
Square Enix to Revamp Game Development Approach Amidst Flat Sales Despite Final Fantasy 16 Release
According to reports from Bloomberg, Square Enix is gearing up for a substantial overhaul in its game development processes, prompted by stagnant sales despite the launch of a mainline Final Fantasy game.
Square Enix’s director and president, Takashi Kiryu, reportedly informed analysts this week that the company intends to reveal its new structure by spring 2024, with implementation scheduled for April. The objective is to enhance the overall quality of the company’s game releases.
In the financial results for the nine months ending December 2023, Square Enix recorded nearly flat sales, with a 4.7% decrease in sales from its digital entertainment business. This outcome is somewhat unexpected, considering the release of Final Fantasy 16 in June.
During its launch week, the PlayStation 5 exclusive sold three million copies, sparking online debates about whether it met Square Enix’s sales targets. In July 2023, Square Enix informed IGN that the sales of Final Fantasy 16 were « extremely strong, » emphasizing its success relative to the PS5 install base.
Although sources indicated a slowdown in sales post-launch, the game was not deemed a disaster. To bolster its performance, Square Enix announced two paid DLC expansions for Final Fantasy 16 in September 2023 and confirmed the development of a PC port. The first DLC is already available, with the second slated for release in spring 2024.
Square Enix attributed declining sales and profits in the digital entertainment business to various factors, including reductions in MMO Final Fantasy 14 and mobile and PC browser game sales, heightened development costs, and increased advertising expenditures. Notably, the statement did not address the sales performance of Final Fantasy 16.
In the context of these developments, Final Fantasy 16 producer Naoki Yoshida suggested that a younger generation might take the lead for Final Fantasy 17. In the near term, there is significant pressure on Final Fantasy 7 Rebirth, set to launch at the end of February, to deliver positive results for Square Enix.
