Square Enix lost $2 billion in value despite Final Fantasy 16 launch

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.

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.