Square Enix Market Value Plummets By $2 Billion After Final Fantasy 16 Release

Expert Verified By

30% Drop In Stock Prices After FF16 Launch!

Square Enix is one of the oldest studios in the industry, continuing to offer quality gaming experiences through its rich catalog of new and existing IPs.

The studio is best known for franchises like Final Fantasy and Kingdom Hearts, the former of which received a new entry this year. Final Fantasy 16 was received well and sold over 3 million units, but Square Enix appears to be struggling.

Square Enix’s stock has dropped to 5.342 yen from 7.540 yen, marking a 30% drop and a loss of around $2 billion in market value.

Why it matters: AAA development is more expensive than ever, with industry experts like Shawn Layden recently warning about the rising costs of making each new title.

Final Fantasy 16

Square Enix was expecting great sales from Final Fantasy 16, but the game’s exclusivity and departure from traditional Final Fantasy gameplay appear to have held it back in some aspects.

A recent report claimed that the developer had hoped for more sales. While Final Fantasy 16 sold reasonably well, it may not have lived up to the high expectations of Square Enix.

Additionally, releases like Forspoken have been among the worst titles of 2023, resulting in lackluster sales. Following such releases, Bloomberg reports the studio may be going through quality control issues.

Multiple sources have expressed concerns about the publisher’s practices, with Tokyo-based developer Michael Prefontaine stating:

“The company has overstretched itself on too many titles without proper oversight.”

Forspoken Immortals of Aveum AMD FSR 3.0

Other sources have claimed that Square Enix is far too trusting with its producers, allowing them too much freedom with each project. This may be one of the reasons for the poor releases like Forspoken in recent years.

Analysts like Kenji Fukuyama believe these signs are worrying for Square Enix’s short and long-term future. The gaming giant may not be able to inspire confidence in investors because of its current conditions.

Nonetheless, Square Enix hopes to turn things around with Final Fantasy 16.

The gaming giant has begun work on two new DLC packs for the game, and Naoki Yoshida recently confirmed that work on the game’s PC version has already begun, potentially bringing millions of new players to the game.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Phil Spencer Has Officially Retired From Xbox After Being At The Company for 38 Years

Phil Spencer is retiring from Xbox after 38 years, with a former AI executive now leading the gaming division in his place.

Lords of the Fallen Studio Welcomes Laid-Off Employees Following Bluepoint Games’ Closure

CI Studio, the developer behind Lords of the Fallen, is now offering roles to affected employees from Bluepoint Games' closure.

Two Far Cry Games And Multiple Assassin’s Creed Entries Are In The Works, Confirms Ubisoft

Ubisoft has confirmed in a new interview that it is working on at least two new Far Cry games and various Assassin's Creed titles.

Study Shows AAA Games Are Losing Ground Among The Youth to Adult Content, Gambling and Doomscrolling

New study shows younger audiences spending less time playing video games and instead, moving towards adult content, gambling, and betting.

NVIDIA RTX 5090 Ti Engineering Sample Leaks — Massive Performance, 750W & Limited Launch Expected

Nvidia's new most powerful GPU the RTX 5090 Ti first ES leaked: massive performance, high Power & limited release revealed