Square Enix lost $2 billion in value despite Final Fantasy 16 launch
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Featured Image Credit: Square Enix
Words by Dan Lipscombe
Square Enix is losing value fast. The Japanese company has lost nearly $2 billion in value since the launch of the latest instalment of Final Fantasy. A one-two punch of declining shares and a long-term investor reducing their stake.
Share prices have dropped by 28% since its most recent high point set in June. The anticipation of Final Fantasy 16 saw the company riding high, early previews were good and fans were eager to experience the first Final Fantasy title of the latest console generation.
The Final Fantasy franchise continues to be Square Enix's saving grace. Take a look at the latest trailer for Final Fantasy VII Rebirth below.
While Final Fantasy 16 was, on the whole, a decent success for Square Enix, it did just miss sales goals despite selling over three million copies.
Square Enix saw a reported profit drop of 66%. This is largely down to a slew of disappointing launches for the company who seemingly missed the target with two Marvel properties, Guardians of the Galaxy and The Avengers; plus an original IP with Forspoken that resulted in folding the team responsible for the game.
According to Bloomberg, these failures have likely influenced the decision by Sumitomo Mitsui Trust Asset Management to reduce their stake in Square Enix.
It’s a turbulent time for the publisher internally as teams disclose a lack of “team structure and proper documentation to organise development” which resulted in games that, while they perform well on Metacritic, are ultimately becoming forgettable to consumers.
The latest change at the top of the company can’t help as Yosuke Matsuda stepped down from his role to be replaced by Takashi Kiryu.
It’s a cluster of issues that have seeped into many aspects of the company which can only have an impact on the games they produce. However, there’s hope for the future as the company’s powerhouse MMO, Final Fantasy 14, will be arriving on Xbox in early 2024 and the eagerly awaited second part of the Final Fantasy 7 remake will also arrive in 2024.