Blog - February 6, 2024

Square Enix wants to reshape its game development operations after Final Fantasy 16 failed to increase profits

Japanese gaming conglomerate Square Enix is ​​looking to dramatically change its approach to game development, the company’s president announced. This comes after the publisher recorded a fall in profits between December 2022 and 2023, even as there were Final Fantasy 16 was carried out last June.

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Bloomberg reported on February 6 that Square Enix representative director and president Takashi Kiryu announced that the company would opt for a “fundamental review of its development pipeline” to improve product quality. (quote translated from Japanese using DeepL). Kiryu went on to add that Square Enix will aim to “reduce outsourced development” and refocus on in-house development, all in an effort to increase quality and profit margins. The new structure and approach is expected to launch this April, and Kiryu will announce more information in spring 2024, analysts said.

Final Fantasy XVI's protagonist, Clive Rosfield, stares into spaceFinal Fantasy 16 was supposed to take Square to the next level, but it never came. Image via Square Enix

Bloomberg also reported all of these changes came after pressure from both users and sponsors. The latter is most expected, as Square Enix recently showed a decline in gaming profits in their December 2023 nine-month earnings report. Even with Final Fantasy 16released last June, the company was unable to beat the performance recorded in its December 2022 9-month report. This may have prompted Square Enix to release two DLCs for FF16, one of which debuted alongside the other in the spring. The game is also set to receive a PC port, further demonstrating Square’s commitment to their flagship title—but even those within Square Enix have recently been wary of being too reliant on The ultimate illusion.

Final Fantasy 7 regenerationthe second part of the remake FF7is coming this year, with a full presentation scheduled for PlayStation State of Play on February 6. It’s unclear whether these structural changes will affect the remake, but they We’ll find out on February 29 when the final game drops.