Final Fantasy Maker Reports $140.8 Million Loss, Shifts to HD Games

Square Enix has reported a loss of $140.8 million for the financial year ending in March 2024. 

The company attributes this to “content abandonment losses” in a statement released today. Square Enix outlines a shift in strategy towards developing high-definition (HD) games, specifically targeting console and PC platforms (over mobile or browser-based titles).

According to Square Enix, this strategic revision aims to streamline the allocation of development resources, adopting a more selective and focused approach. However, the statement lacks specific details regarding the fate of ongoing projects or whether any have been canceled due to this decision.

The company also indicated a forthcoming review of its consolidated forecasts to assess the impact of the reported loss on its overall financial performance for the past year. This news arrives following previous indications of financial challenges for Square Enix, including lukewarm sales results for the first nine months of 2023.

Despite these setbacks, Square Enix had recently launched major titles like Final Fantasy XVI and Final Fantasy VII Rebirth. However, rumors have circulated about underwhelming sales performance, particularly regarding Final Fantasy VII Rebirth.

According to GamesIndustry.biz head Christopher Dring, Final Fantasy VII Rebirth’s opening week is down nearly 30% over the launch of the previous game.

In terms of UK boxed sales, Final Fantasy VII Rebirth's opening week is down nearly 30% over the launch of the previous game. The first game came out during the peak of COVID lockdowns (gfk figures). Digital data arrives later in the week.

— Christopher Dring (@Chris_Dring) March 4, 2024

At the same time, as per analysts interviewed by Bloomberg in February, Square Enix would be working on an updated development process. It might incorporate a new evaluation mechanism, empowering the company to assess a game’s quality at an earlier phase of its development cycle.