Square Enix reports sales drop amid ‘reboot’ towards multiplatform development

Square Enix has revealed its latest financial results, seeing an overall year-on-year sales dip. However, Square Enix CEO, Takashi Kiryu, was quick to remind everyone that the company is in the middle of a ‘reboot' as it pivots towards multiplatform development. 

In recent years, Square Enix has primarily developed massive exclusives for PS5. However, after Final Fantasy 16 and Final Fantasy 7 Rebirth both failed to meet sales expectations, Square Enix kicked off a new effort to transform its studios for multiplatform development. That effort began last year, and Square Enix has not released a tentpole title since Final Fantasy 7 Rebirth.

In the earnings report (via Eurogamer) Square Enix confirmed that its digital entertainment (video games) revenue dropped by 18 percent compared to the previous year. However, operating income saw an increase.

Looking ahead at the rest of the year, Square Enix has Final Fantasy 7 Remake and Bravely Default as major titles for the Switch 2 launch this summer, followed by Dragon Quest 1 + 2 HD-2D Remake later in the year for PC, PlayStation and Switch.

Due to the end of service for many mobile games in Square Enix's arsenal, mobile game revenue dipped this year too. However, the upcoming release of Final Fantasy 14 Mobile should bring a big boost.

Future tentpole releases, like the anticipated third part to the Final Fantasy 7 remake trilogy, Dragon Quest 12 and Kingdom Hearts 4, should be multiplatform at release, which should in turn improve overall sales.

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KitGuru Says: Square Enix will turn things around. These dips are to be expected in a year lacking a new game from one of the publisher's most well-known IP. 

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