Square Enix Unveils Strategic Moves and Future Plans in CEO's Financial Conference Call

In a recent financial results conference call, Square Enix's new CEO, Takashi Kiryu, took the stage to shed light on the gaming giant's current business landscape and future endeavors. The transcript, published by Square Enix, serves as a roadmap for the company's trajectory.

The Rebirth of Final Fantasy VII Takes Center Stage

Kiryu-san emphasized that the success of the highly anticipated Final Fantasy VII Rebirth will play a pivotal role in achieving Square Enix's yearly operating income target of 55 billion yen (approximately $371 billion). With positive early feedback, the company anticipates a substantial contribution to earnings in the current quarter. Additionally, Final Fantasy VII Ever Crisis, celebrating its six-month milestone in March, is expected to benefit from synergies with the main title.

Dawntrail Expansion and Final Fantasy XIV's Future

A glimpse into the upcoming Final Fantasy XIV expansion, Dawntrail, was revealed, featuring the new Pictomancer job. Square Enix aims for heightened performance, fueled by the recent Fan Festival in Tokyo Dome, building anticipation for Dawntrail's summer 2024 release.

Despite a dip in revenue for the first half of the fiscal year, Kiryu-san highlighted the MMO sub-segment's enduring strength, fueled by revelations at Fan Festivals in Las Vegas and London.

Strategic Moves and Acknowledging Missteps

Addressing the challenges, Kiryu-san acknowledged Infinity Strash: Dragon Quest The Adventure of Dai's criticism, attributing it to a time gap between the anime and the game's release. Square Enix now integrates customer feedback in the early stages of development, extending the practice to console and PC games.

Diversity and Inorganic Growth

Kiryu-san identified a lack of diversity in Square Enix's portfolio, vowing to broaden gaming experiences beyond established franchises. Strengthening internal development capabilities is a key goal, with potential inorganic growth strategies, hinting at acquisitions or new studios.

Elevating Marketing and Focusing on Quality

Recognizing marketing gaps, Kiryu-san emphasized adapting to a diverse digital landscape. Square Enix plans to bolster its publishing arm and hire talent for efficient marketing. In May, a new medium-term business plan will delve into specifics.

In the console subsegment, the CEO stressed strengthening internal development for carefully selected, high-quality titles. The aim is not more games, but a refined portfolio with a clear distinction between blockbusters and indie titles.

A Global Approach to IP and Future Initiatives

Kiryu-san expressed openness to a multifaceted approach in leveraging IP, exploring cross-media adaptations for the Final Fantasy franchise to diversify earnings. Square Enix aims to reach a global audience across age demographics, teasing initiatives to be outlined in the upcoming medium-term business plan.

As Square Enix navigates the evolving gaming landscape, Kiryu-san's vision underscores a commitment to innovation, quality, and global expansion. The stage is set for an exciting future, with fans eagerly awaiting the realization of these strategic ambitions.