Square Enix in crisis: losses of $140 million and games cancelled

It’s been a while since Square Enix has been living in a moment of not exactly grace, and unfortunately the latest financial results speak even more clearly: the company has lost $140 million.\r\nAlready at the beginning of the year the company had left understand that the latest major releases have not been as profitable as hoped, to which we also add the most recent Final Fantasy VII Rebirth (you can find it on Amazon) which sold well below expectations (although perhaps there is still hope).\ r\nDespite Final Fantasy XVI, an important name to say the least that should have marked the rebirth of the company, Square Enix’s earnings are practically at a standstill.\r\nBut the situation has apparently worsened considerably, as Square Enix reports in its annual report.\r\nSquare Enix said it expects to “recognize extraordinary losses related to churn associated with content production,” as it notes in the report. These losses were reported as potentially $140 million.\r\nFaced with these data, the company also announced a considerable change of direction regarding the production of the next video games.\r\nThe company has indeed decided to review the group’s approach to the development of high definition games, with «the intention of being more selective»:\r\n\r\n«In the meeting called on March 27, 2024, the Board of Directors of Square Enix Holdings voted, in light of the myriad of changes underway in the environment surrounding his group, to review the group’s approach to high definition (HD) game development with the intention of being more selective and focused in the allocation of resources for development. Following close review, the company expects to recognize approximately 22.1 billion yen in content abandonment losses on its books for the fiscal year ended March 2024.”\r\n\r\nThis means that many of the projects that were rumored to be in the pipeline will now have to undergo a major overhaul. Among these are the return of an alleged classic that Square Enix had anticipated, not to mention the remake of Final Fantasy IX which was among the most recurring rumors.

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