Square Enix has unveiled a comprehensive new business initiative, titled “Square Enix Reboots and Awakens,” aimed at aggressively pursuing a multiplatform strategy for its key titles. This initiative will encompass releases across Nintendo, Xbox, PlayStation, and Windows PC.
Historically, Square Enix has been active across various platforms but has frequently engaged in exclusivity agreements, particularly with Sony. Notable examples include Final Fantasy 7 Rebirth and Final Fantasy 16, both of which are currently exclusive to PlayStation 5. Titles like Forspoken and the original Final Fantasy 7 Remake were initially launched on PlayStation and PC. Furthermore, Final Fantasy 14 only made its debut on Xbox this past March, over a decade after its initial release on PC and PlayStation.
According to the company’s latest financial report, the new strategy marks a significant departure from this tradition. Square Enix aims to “build an environment where more customers can enjoy our titles” and is particularly focused on “major franchises and AAA titles, including catalog titles.” This suggests that previously exclusive titles, such as the Final Fantasy 7 series and Final Fantasy 16, may soon become available on additional platforms.
This strategic pivot follows reports indicating that both FF16 and FF7 Rebirth did not perform as well as anticipated financially. The company acknowledges in its report that there has been “low profitability” in its “HD games” segment, which includes medium- to big-budget titles for consoles and PC. This admission is particularly concerning considering it occurred during the fiscal year when two of the company’s flagship franchises were released.
The industry at large is similarly reevaluating the viability of platform exclusivity. Xbox, for instance, has started publishing games on rival consoles, and Sony is actively exploring the potential and challenges of a multiplatform approach with titles like Helldivers 2. Square Enix’s rhetoric about reaching a larger audience mirrors that of Microsoft’s defense for its own strategic decisions.
Additional aspects of Square Enix’s plan, which extends through March 2027, include a transition from “quantity to quality.” While quality improvements are always welcome, the intention to “regularly release AAA titles in [Square Enix’s] major franchises” may reflect a risk-averse inclination towards sequels that pervades major game publishers. As part of this plan, Square Enix has already canceled several titles that did not align with its new direction.
Moreover, the company intends to focus on in-house development and to streamline its internal studios, or “business units,” to foster better integration. This indicates an end to the long-standing era of powerful individual producers with considerable autonomy. While some reports suggest that the existing decentralized structure can be disorganized and frustrating for employees, it has also led to games with distinct personal touches. Achieving a “balance between the creativity of its individual employees and the management centered on the organization,” as Square Enix envisions, will be crucial going forward.
In summary, the new business plan suggests a company in the midst of a transformative crisis, seeking to reboot its strategy in an evolving gaming landscape where AAA budgets and platform exclusivity increasingly seem incompatible.
Update (May 14): Bloomberg journalist Takashi Mochizuki provided additional insights following comments from Square Enix president Takashi Kiryu. Kiryu confirmed that Final Fantasy 16, Final Fantasy 7 Rebirth, and Foamstars, another PlayStation exclusive, did not meet sales expectations. He also reiterated the importance of balancing “individual creativity and organizational discipline.”
Square Enix shares plummeted on Tuesday amid concerns that the company lacks significant upcoming titles, and it may take some time before the benefits of the reorganization are realized.
