Square Enix Fears Western Studios "Dismantle" Japanese Game Sales

Square Enix Fears Western Studios “Dismantle” Japanese Game Sales

The latest round of financial results for publisher Square Enix has been released, and it’s showing some interesting numbers. However, the internal conference call, relating to the financial report, revealed that more Western studios are about to be up for sale.

The financial results show that despite slowing growth in Square Enix’s single-player game sales, the hugely popular MMORPG Final Fantasy XIV not only exceeds expectations, but prevents the company from plunging into the red.

Square Enix recently sold several Western studios, such as Eidos and Crystal Dynamics, for as little as A$432 million. According to the analyst David GibsonThat was only “Phase One” of a two-stage plan. This series of planned sales is intended to “diversify the studio’s capital structure” – from the layman’s perspective, given that development costs have risen dramatically as a result of various global events, Square Enix must be selective about the resources it spends.

Since Square Enix is ​​a Japanese publisher, this likely means that the company will focus on dividing resources toward Japanese developers and games, and putting Western studios on the proverbial chopping block — all in the name of maximizing capital efficiency.

This comes at a good time for other businesses, too. Sony and Tencent, the two huge video game companies, are looking to expand their reach. For years, fans have wondered whether Sony would buy Square Enix, given the company’s flagship Dragon Quest and Final Fantasy series history. As of writing this article, Square Enix’s stock price is up 9% as a result of the announcement, indicating a good short-term outlook for the company.

Square Enix relies heavily on Final Fantasy 14, a multiplayer online multiplayer and combat game, to increase its revenue streams. The game is so popular that in-game nightclub owners have rented real billboards to advertise their DJ parties. Final Fantasy is such a popular series that even older games, such as Final Fantasy X, are given adaptations of stage shows in Japan.

Original reports by David Gibson.

Written by Junior Mayi on behalf of GLHF.

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