Square Enix expects record losses as it cancels several games in development and changes strategy for its HD games

Produce less, even if it means sacrificing projects already in progress

Bloomberg reports the information by relaying Takashi Kiryu's speech during Square Enix's latest financial report for the last quarter to date, which has not yet been made public. In this, new fiscal year requires, the CEO must explain the group's strategy to follow during the coming months, but also reveal if losses are expected. And this is the case, since the company expects to record a record loss of 22 billion yen, which is equivalent to approximately 130 million euros.

Where does this amount come from? Quite simply from a review of the editor's portfolio, who decided to pause or cancel several games that fall into the so-called “HD” games segment. Understand by this the games intended for PC and consolesexcluding MMO (Final Fantasy XIV is in a category of its own). A strategy announced last year by Takashi Kiryuwho wants to avoid seeing periods like the end of 2022 repeat themselves (with the releases of The Diofield Chronicle, Valkyrie Elysium and other Square Enix games released in a pocket square).

This previous strategy cost Square Enix dearly, and to avoid falling back into its mistakes, Square Enix now wants to be more selective in its projects. However, several of these games had been in development for several months, and their cost will never be profitable, hence the announced losses.

What games can be canceled?

Does this mean that Dragon Quest XII is in danger ? Certainly notsince it is Square Enix's strongest RPG license in Japan (ahead of Final Fantasy), and even if this twelfth episode takes time, there is no doubt that he is one of the survivors.

Does this impact Final Fantasy VII Remake Part 3 ? Here too, little risk given that many assets are already created and that profitability can be improved from episode to episode (unlike sales) if few new features are introduced.

The games canceled here are likely titles that were not yet officially released to the publicso nothing to fear either on the side of Kingdom Hearts IVa priori.

But when it comes to smaller scale games like Babylon's Fall, Foamstars, Voice of Cards and other titles that have gone somewhat unnoticed (i.e. all AA), we should see less and less of them from the publisher. We are now awaiting the publication of the results for the last quarter to have more details.

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