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New Square Enix Financial Report States President Wants To Improve Profits With a Focus On HD Games

Takashi Kiryu has plans to make Square Enix's core games more profitable.

Square Enix president Takashi Kiryu has outlined his vision for the company’s future as he tells investors his primary aim is to “improve our profitability.” The president’s proclamation came in an Aug. 4 briefing, an outline of which was released in English on Sept. 19.

Quizzed in the Q&A portion of the briefing, Kiryu was asked what he hoped to accomplish now he had assumed the role of president. His answer was simple and to the point: “I want to improve our profitability. I see ample room for improvement in our operating profit margin and would like to start by working primarily on our HD games.”

Kiryu was appointed president of Square Enix in March, following the departure of Yosuke Matsuda. Matsuda, who had helmed Square Enix for almost a decade, had previously faced criticism as a vocal advocate of NFTs and blockchain gaming. His replacement, Kiryu, officially took control in June of 2023. And according to Kiryu, the HD games sub-segment is what he plans to focus on.

"HD games" is how Square Enix classifies its primarily single-player games released on consoles and PC. This includes Final Fantasy XVI and Final Fantasy Pixel Remaster but excludes its MMOs, smartphone titles, browser games, and arcade offerings, which it segments separately. 

Kiryu also fielded questions about the sales of Final Fantasy XVI and how he intends to expand sales in the future. While in the report it’s noted that sales of Final Fantasy XVI and Final Fantasy Pixel Remaster helped net sales numbers rise, the sales period is repeatedly referred to as “brisk.” 

In response to this, Kiryu stated that the three million units sold of FFXVI were “in line with our expectations.” He continued explaining the company’s future strategy for the game. “To expand sales, we have planned a variety of PR activities and other initiatives to encourage more of the growing PlayStation 5 installed base to play the title.”

Beyond this, Kiryu outlined other methods for enhancing profitability, including a “nuanced approach to investment.” This was described as identifying existing IPs with the potential to be upgraded to AAA status. Square Enix has historically struggled to establish secondary top-tier IPs, especially in comparison to its competitors such as Nintendo, Capcom, and Bandai Namco. The new Square Enix president seems keen to avoid this trend.

Other takeaways from the document include a fall in MMO sales across the board (perhaps expected, given the lull in Final Fantasy XIV’s content) and a struggling mobile games segment. However, the briefing also stressed that it projected big things from upcoming titles Final Fantasy VII EVER CRISIS, Final Fantasy XIV: Dawntrail, and the FFXIV Xbox X|S release.

About the Author

Michael Hassall

After giving up a "real" job in Marketing in 2019, Michael started working as esports, gaming, and entertainment journalist and hasn't looked back. He lives in the UK, but wishes he lived in Eorzea, having spent 5,000 hours there. When not dutifully grinding Tomestones and being designated furniture crafter for his FC, he enjoys travel to warm places, cold drinks, light reading, and heavy metal.