Square Enix Holdings Co Ltd (OTC:SQNXF) is poised to revamp its game development strategy following stagnant sales despite the release of Final Fantasy 16.
According to Bloomberg (via IGN), Square Enix president Takashi Kiryu announced plans for a new structure by spring 2024 to enhance game quality.
Despite Final Fantasy 16's launch on PlayStation 5 selling three million copies in its first week, Square Enix's overall sales remained flat, with digital entertainment sales declining by 4.7% in December 2023.
Final Fantasy 16 met initial sales targets but faced a slowdown afterward. Square Enix confirmed two paid DLC expansions and a PC port for the game.
However, the company attributed declining digital entertainment sales and profits to various factors such as Final Fantasy 14 MMO and mobile game sales decreases, rising development costs, and increased advertising spending.
Amidst these challenges, Final Fantasy producer Naoki Yoshida suggested the possibility of a younger generation leading the franchise, potentially with Final Fantasy 17. With the upcoming launch of Final Fantasy 7 Rebirth, Square Enix aims to alleviate pressure and boost sales.
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