Square Enix shifting focus to quality over quantity

Square Enix, known for popular franchises like Final Fantasy, is going through a significant transition in its approach to video game production. The company has announced its medium-term business strategy for the fiscal years 2025-2027, which emphasizes a shift from quantity to quality. No longer focusing extensively on medium-budget games, Square Enix plans to invest more in titles with the potential for long-term success. This new direction is a response to recent financial losses, including a $140 million hit from cancelled projects.

As part of their strategy, Square Enix has also proclaimed a move towards multiplatform releases, with the aim to deliver major franchises and AAA titles across Nintendo, PlayStation, Xbox, and PC platforms. Additionally, the company is considering platform strategies for titles on mobile devices, potentially expanding to PCs. Square Enix also hints at creating new IPs and reviving older ones, although these changes may take some time to be fully implemented.

What is Square Enix's new business strategy?

Square Enix's new business strategy focuses on producing fewer, higher-quality titles with substantial long-term potential while adopting a multiplatform release approach across consoles and PCs. They are also considering launching mobile titles on PC and are open to creating new IPs as well as revisiting older ones.

The impact of this strategy shift reflects the broader trend within the gaming industry where developers focus on blockbuster hits and heavy-hitters. It suggests a more calculated and possibly more sustainable approach for Square Enix to foster franchises that can attract and retain players over extended periods.

Background Information:

Square Enix is a renowned Japanese video game developer and publisher responsible for creating some of the most iconic and best-selling game series in the industry, including Final Fantasy, Dragon Quest, and Kingdom Hearts. Their pivot from producing a large number of mid-range titles to focusing on fewer, more impactful high-quality games is reflective of the industry's movement towards major tentpole releases that offer continuous engagement, such as live service games, and the changing landscape of gaming platforms with the increasing importance of cross-platform play.