Square Enix Announces Plans to Enhance Game Quality and Profit Margins
Reduced Outsourcing and Focus on In-house Development
Square Enix, one of the leading game development companies, is aiming to improve the quality of its games while boosting profit margins. The company president, Takashi Kiryu, announced during Square Enix’s latest financial results briefing that they will review their development system. This review will involve reducing outsourced development and focusing on large-scale games developed in-house.
New Development System to be Announced in Spring
According to Takashi Kiryu’s comments, the new development system is expected to be announced in the spring. Multiple sources at the conference call have revealed that the system will be in effect from next month, aligning with the start of Square Enix’s new financial year.
Financial Performance for the Current Fiscal Year
The financial report shared by the company highlights a 2.6 percent year-on-year decline in net sales and operating income for the Digital Entertainment division. However, within this division, the net sales for the HD Game sub-segment have risen due to the popularity of games such as Final Fantasy 16, the Final Fantasy Pixel Remaster series, and Dragon Quest Monsters: The Dark Prince.
Mobile Game Sub-Segment Faces Decline
Interestingly, Square Enix experienced a decline in net sales within the mobile game sub-segment, despite the launch of the highly anticipated game, Final Fantasy 7 Ever Crisis. This decline mirrors the company’s previous financial results released in November.
Square Enix’s Vision for Diversifying Gaming Output
Kiryu’s recent comments echo those made in November, indicating the company’s need to diversify its gaming output while concentrating on releasing fewer games. This strategic approach aims to maintain quality while catering to a wider range of gaming preferences.
Upcoming Game Releases
Final Fantasy 7 Rebirth is set to launch later this month and is expected to generate high sales. This will be followed by the release of Final Fantasy 14: Dawntrail in the summer, which intends to continue the success of the MMO and solidify its position as the most profitable game in the series.
Conclusion
With the commitment to in-house development and a renewed focus on game quality, Square Enix aims to enhance the gaming experience for its players and maximize its profit margins. The announcement of a new development system in the spring signifies the company’s determination to evolve and adapt to meet the demands of the gaming industry.
