Square Enix is apparently considering selling holdings in several of its production studios following its most recent results conference in order to focus more resources on specific games.
David Gibson, an analyst for the video game business, claims that the publisher would assess its studio portfolio to determine which ones it wants to keep 100% control of or offer holdings to other interested companies. Gibson stated that Square Enix sees this tactic as a means to focus “resources mainly on Japan releases” and that Sony, Tencent, and Nexon may be interested.
The four Creative Business Units of Square Enix, which are in charge of Final Fantasy, Kingdom Hearts, and other smaller games, Luminous Productions, which is presently working on Forspoken, and Tokyo RPG Factory are just a few of the studios the company currently employs. Since Square Enix has no debt and more than enough operational capital to support game production, Gibson highlighted that the company’s strategy is unusual.
The recent acquisition of Square Enix’s Western studios Eidos Montreal and Crystal Dynamics to Embracer Group was also discussed during the earnings call. These studios, in Gibson’s words, “cannibalised” sales from the rest of the group as a whole.
Phase 1 of Square Enix’s strategy was that sale, and Phase 2 will involve a portfolio assessment. Additionally, the game publisher has acknowledged that it intends to invest in blockchain and NFT technologies, which are in conflict with the themes of one of its best-selling titles, Final Fantasy VII.
Square Enix has a tonne of games planned for the future, which could appeal to investors in its proposal. Tactics Ogre will soon get a makeover, Forspoken will debut the next year, and Harvestella looks delectable. The company’s iconic Final Fantasy franchise will also witness the release of Final Fantasy XVI in the summer of 2023 and Final Fantasy Rebirth in the winter of 2023.
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