Square Enix Reiterates Increasing Focus On AAA Titles Moving Forward

Square Enix has had a good run in the gaming industry for many years. The gaming giant has produced fantastic releases from AAA games like Final Fantasy 16 to smaller titles like Octopath Traveler.

Previously, Square Enix announced it would concentrate on putting out big titles more frequently. This involved changes to the company, ensuring it would be equipped to handle the development of such projects.

Following its recent earnings call, Square Enix has reiterated that it aims to focus more on AAA titles moving forward.

Why it matters: AAA development is getting more expensive and time-consuming. This could be a massive risk for the studio but may lead to huge profits with quality releases.

Square Enix says it will focus less on mid sized games and more on AAA titles going forward.

"Focused strategy – less mid sized, more larger AAA console games, company said will take several years to impact" via @gibbogame pic.twitter.com/glQd00rvLs

— Genki✨ (@Genki_JPN) August 7, 2023

The information comes from David Gibson, an analyst who was part of the call. According to the analyst, Square Enix will limit smaller and mid-sized projects.

Such projects include the popular Octopath Traveler. Therefore, this claim has alarmed many fans interested in the developer’s smaller titles, including the recently released Octopath Traveler 2.

Fortunately, the announcement suggests that Square Enix will not completely abandon such titles. Instead, fans will see a reduced output of smaller-scale releases as the studio focuses on blockbuster releases.

While this might sound concerning for developers like Team Asano, the change is expected to take a few years to be implemented, and current projects that have already begun development will likely proceed without any changes.

Due to the lengthy production times of AAA games, this could lead to fewer games each year from Square Enix. The publisher is also unlikely to take massive risks due to the budget of each project.

Square Enix has already learned an important lesson with games like Forspoken. The game had a massive budget but failed to meet expectations. Such failures led to the gaming giant’s operating income falling by 78% recently.

On the other hand, a successful AAA game can lead to huge profits. Final Fantasy 16 has sold more than 3 million copies, recouping its development costs. Therefore, future sales will go toward profits for the studio.