Square Enix Set For Game Development Revamp Post-Final Fantasy 16: Quality Upgrade By Spring 2024?
Portfolio Pulse from Franca Quarneti
Square Enix Holdings Co Ltd (OTC:SQNXF) plans to revamp its game development strategy by spring 2024 to enhance game quality, following stagnant sales despite the successful launch of Final Fantasy 16. The company's overall sales remained flat, with a 4.7% decline in digital entertainment sales in December 2023. Square Enix attributes the decline to various factors including decreases in Final Fantasy 14 MMO and mobile game sales, rising development costs, and increased advertising spending. The company also announced two paid DLC expansions and a PC port for Final Fantasy 16, and hinted at a potential leadership change with a younger generation for future projects.
February 06, 2024 | 8:36 pm
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Square Enix is set to revamp its game development strategy by spring 2024 aiming to enhance game quality after Final Fantasy 16's launch didn't significantly boost overall sales.
The announcement of a strategic revamp to enhance game quality by spring 2024 indicates Square Enix's commitment to addressing stagnant sales and declining digital entertainment revenue. While the successful launch of Final Fantasy 16 shows potential, the overall flat sales and specific challenges such as decreased sales in other franchises, rising development costs, and increased advertising spending suggest a cautious outlook. The strategic changes could lead to long-term benefits, but the short-term impact on the stock is neutral due to the uncertainties surrounding the effectiveness of the new strategy and the timing of its implementation.
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