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Square Enix Unveils New Business Plan with Aggressive Multi-platform Strategy and Quality Over Quantity Focus

5/13/2024

Square Enix Unveils New Business Plan with Aggressive Multi-platform Strategy and Quality Over Quantity Focus

Today, Square Enix reported its financial results for the fiscal year ending on March 31. While the results fell short of expectations, the Japanese publisher also announced an ambitious medium-term business plan that will extend through March 31, 2027. The plan, titled “Square Enix Reboots and Awakens – 3-years of Foundation-Laying for Long-term Growth,” introduces key changes compared to the studio’s previous strategy.

Aggressive Multiplatform Strategy

Square Enix is shifting its approach to HD titles, aiming for a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs. Major franchises and AAA titles, including catalog titles, will be accessible to a wider audience. Additionally, the company plans to explore platform strategies for SD (smaller-scale) titles, potentially expanding beyond iOS and Android to include PC launches.

Quality Over Quantity

The company’s philosophy is shifting from quantity to quality. Square Enix aims to strike a balance between a “product-out” approach, driven by its employees’ imaginations, and a “market-in” approach that leverages customer feedback and data. The goal is to create titles that resonate with players for years, focusing on regular launch cadence and substantial potential.

Future Prospects

The commercially underwhelming launches of “Final Fantasy XVI” and “Final Fantasy VII Rebirth” likely influenced Square Enix’s decision to forego PlayStation exclusivity for its premier franchise. Going forward, the company may prioritize day-and-date releases across all available platforms.

Financial Targets (FY 2025–2027)

  • Consolidated operating margin of 15% by March 31, 2027.
  • Up to ¥100 billion ($641 million) for total strategic investments (including shareholder returns) over three years.
  • Potential repurchases of Square Enix’s own shares between May 14, 2024, and May 13, 2025, up to ¥20 billion ($128 million).

Square Enix’s new business plan reflects a commitment to quality, accessibility, and growth. As fans, we can look forward to exciting developments in the gaming landscape.