- Following Square Enix’s latest financial report, the company’s stock has declined by 16%.
- The president has told analysts that Final Fantasy 16, Final Fantasy 7 Rebirth, and Foamstars sold below expectations.
- The sharp decline in stock prices has led to concerns from investors.
Although Square Enix has produced exceptional titles like Final Fantasy 16 and Final Fantasy 7 Rebirth recently, it seems that these games didn’t help the company as a whole.
Following a grim financial report yesterday, the stock market paints an even more concerning picture for the publisher. Its stock has declined by a whopping 16%.
Why it matters: While Square Enix is seemingly unable to get back on track, Japanese publishers like Sega and Capcom are doing better than ever.
Square Enix stock has dropped nearly 16% following the disappointing FY2024 financial results. Share price hit the lowest point in over 13 years.
Investors are worried the pipeline has become too empty, with no big titles that can lift the company over the next couple of years. pic.twitter.com/cRPfh6IJnQ
— MauroNL (@MauroNL3) May 14, 2024
Square Enix’s latest figures seem disappointing for investors since the share prices have hit a new low in the last 13 years.
The investors seem to have lost faith in the company, as they didn’t see any growth in recent years. Following recent cancellations, Square Enix’s pipeline also appears concerning for investors targeting high-impact releases.
Bloomberg reports that President Takashi Kiryu blames the recent Final Fantasy titles for these results. He has informed analysts that they sold below expectations on PlayStation consoles.
This result has triggered a switch to third-party gaming at the studio. The report further highlights that Square Enix expects to earn an operating income of 40 Billion Yen this year, which is a significant decline from the previous expectation of around 57 Billion.
Perhaps the most telling sign of disappointment for Square Enix is the fact that it has yet to provide sales figures for Final Fantasy 7 Rebirth.
The game has likely sold a few million units, but the publisher has refrained from informing investors. Similarly, Final Fantasy 16 has not received an update after the first announcement of 3 million copies sold.
Square Enix also pointed to increased development costs for its poor financials. However, the studio hopes that its restructuring will be enough to solve the problem and get it back on track, even if it may require a few years.
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[News Reporter]
Bawal is an MBBS student by day and a gaming journalist by night. He has been gaming since childhood, growing fond of the creativity and innovation of the industry. His career as a gaming journalist started one year ago, and his journey has allowed him to write reviews, previews, and features for various sites. Bawal has also been cited in reputed websites such as Screenrant, PCGamesN, WCCFTech, GamesRadar, and more.
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