Square Enix plans to overhaul its approach to game development to improve the quality of individual games and increase its overall profit margin.
As reported by BloombergJapanThe move was announced by Square Enix president Takashi Kiryu at a financial results briefing for analysts yesterday.
Kiryu reportedly said on the call: “We are reviewing the organizational structure from the ground up and how we can best implement the content of the pipeline.”
Details of this new system will apparently be announced “at least in the spring,” while analysts attending the conference said it would come into effect in April. But overall, Kiryu wants Square Enix to double down on in-house game development and curb the amount of game work it outsources to third-party companies. The analysts further explained that the new system will include a review mechanism to assess the quality of games.
As a publisher, Square Enix has become more isolated for some time. In 2022, the company sold its western arm to Embracer Group, which included developers such as Crystal Dynamics and Eidos Montreal, as it prioritized its Japanese studios and IPs. The decision regarding outsourcing, meanwhile, may well have been due to the protracted development of Final Fantasy lost start of game.
This isn't the only bold announcement Kiryu has made recently. Last November, Square Enix's president said that he intended to “shrink our lineup” and focus less on mid-budget titles and more on big titles like Final Fantasy. Meanwhile, in his New Year's letter to employees, Kiryu highlighted the benefits of generative AI, saying it “has the potential to not only reshape what we create, but also fundamentally transform the processes by which we create.”
Of course, CEOs love making big statements like this. But as Wes pointed out, Square Enix has seen some wild changes in game development in recent years, resulting in equally dramatic successes and failures. A little more focus probably makes sense, although let's hope that the publisher doesn't throw its personality aside in the process.
