With the latest Square-Enix earnings report, it’s clear that the company isn’t heading the financial direction it had hoped. Of particular note, Operating Income was down 26.6% year-over-year while profits were down 69.7% (attributed to the cancellation of “key pieces of content”).
Given the disappointing figures, Square-Enix has listed several changes in their strategic direction. Of particular note is to “…aggressively pursue a multi-platform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs.”
Their new pillars for their “medium-term” plan include creating “fun” titles, the multi-platform strategy, enhancing the foundation of their business divisions, and revising their balance between shareholder return and growth investment.
As Final Fantasy 7 Rebirth reportedly didn’t meet sales expectations, and it’s not the first time Square-Enix has reported underwhelming figures, it’s no surprise that substantial changes to the strategy are coming. As we’ve discussed extensively here at SG and on Bitcast, changes are coming across the industry to how games are published. You can fully expect to see more companies heading down this same road.
