Square Enix is reportedly making big changes to how it creates games after experiencing poor sales, despite the release of a major game in the Final Fantasy series. The company’s chairman and president, Takashi Kiryu, told analysts that a new structure will be announced in spring 2024 and launched in early April, with the goal of improving the quality of its games.
In its financial results for the nine months ending December 2023, Square Enix saw a 4.7% decline in its digital entertainment business, despite the release of Final Fantasy XVI in June. The game, which was a PlayStation 5 exclusive, sold three million copies during its launch week. However, sales slowed considerably after the launch, leading to concerns about whether it had met Square Enix’s sales goals.
The company announced in September 2023 that Final Fantasy XVI would receive two paid DLC expansions, with a PC port also in development. The first DLC is now available, and the second is planned for spring 2024. Square Enix attributed the decline in sales and profits of its digital entertainment business to factors such as the decline of the MMO Final Fantasy XIV, sales of browser games for mobile and PC, increased development costs, and advertising spending.
Naoki Yoshida, the producer of Final Fantasy XVI, suggested that it may be time for a younger generation to lead the franchise and direct the next installment, Final Fantasy XVII. In the short term, there is pressure on Final Fantasy VII Rebirth to make Square Enix profitable, as it is set to be released at the end of February.
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