Square Enix, which is also experiencing difficulties, has just made a radical decision to protect itself. Whether this will prove to be a wise choice in the long term remains to be seen.
Square Enix, a major player in the video game industry, recently made the strategic decision to end the production of several high definition games that had been previously approved. Everything was announced during a meeting of the board of directors on March 27, 2024. This drastic measure leads to a significant repositioning in the management of its future projects.
Square Enix marks a big stop
The company recorded a substantial loss amounting to 22.1 billion yen (approximately 140.8 million US dollars). Directly resulting from the abandonment of these projects. However, this loss is not necessarily seen as a failure. But rather as a way of circumscribing the financial risks associated with the development of games which might not meet with the expected success.
In a move aimed at optimizing its resources and concentrating its efforts on projects deemed more promising, Square Enix announced that it would now be more selective in the choice of intellectual properties (IP) on which it decides to work. This new strategic course is designed to avoid excessive spending. And to ensure that funds are allocated to projects with higher profitability potential. Good news ? We’ll let you judge. In any case, this potentially affects many games, such as FF Tactics, FFX Remake or FF9 Remake or even DRAGON QUEST III HD-2D Remake.
This decision to re-evaluate and more rigorously select projects in development is a response adapted to the fluctuating challenges of the gaming industry. Where, unfortunately, competition is fierce and players’ expectations evolve rapidly. Through this initiative, Square Enix hopes to reduce its risks. But also position ourselves in such a way as to be able to innovate and captivate a global audience with future successful games.
In conclusion, although this decision marks a moment of transition for Square Enix, it reflects the company’s desire to focus on the quality and financial viability of its upcoming games. Thus ensuring its sustainability in a constantly changing market.