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Square Enix unveils new business strategy and expands major franchises to multiple platforms, including Nintendo, PlayStation, Xbox, and PC.
Square Enix has announced its new medium-term business plan, “Square Enix Reboots and Awakens: 3 Years of Foundation-Laying for Long-Term Growth.” It spans fiscal years ending March 31, 2025, through March 31, 2027.
This follows a reported loss of $140.8 million for the financial year ending March 2024.
The new plan targets past challenges, including low profitability in high-definition games and sluggishness in smart device and PC browser gaming segments. Square Enix’s strategy revolves around four key pillars to revitalize its operations and drive sustained growth.
Firstly, the company aims to enhance productivity in its Digital Entertainment (DE) segment by prioritizing quality over quantity, focusing on titles that deliver a unique sense of “Fun” while optimizing development processes.
Secondly, Square Enix plans to diversify revenue streams by adopting a multiplatform strategy, including expansion to Nintendo platforms. The company’s emphasis on expanding to Nintendo platforms particularly suggests potential AAA titles for the upcoming successor to the Nintendo Switch.
“For HD titles, the Group will aggressively pursue a multi-platform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs,” reads the report published earlier today. “Especially in regards to major franchises and AAA titles, including catalog titles, it will build an environment where more customers can enjoy our titles.”
Thirdly, Square Enix intends to bolster foundational stability by restructuring overseas business divisions, revamping human resource policies, and improving business infrastructure.
Lastly, the company plans to strategically allocate capital, earmarking funds for growth investments and shareholder returns.
Square Enix’s ambitious business plan is pivotal for the gaming industry, which has weathered almost two years of layoffs and closures.
With recent setbacks like the closures of Arkane Austin and Tango Gameworks, developers behind titles such as Redfall and Hi-Fi Rush, and other Bethesda studios, it’s encouraging to see studios like Square Enix striving to rebuild and innovate.
