Reporting a disappointing year where profit was down nearly 70%, Square Enix has announced a new medium-term business plan over the next three years, targeted at “rebooting long-term growth”. Plans include a “shift from quantity to quality” and to “aggressively pursue a multiplatform strategy”.
In their announcement of these new plans, the company asserts a commitment to more in-house development, and “revamping its internal title development footprint”, along with a careful consideration of new IP. Another pillar of this new plan is the declaration of a new company philosophy, “Enrich people’s own life with our help of creating precious “unforgettable experiences”. They define these experiences as becoming part of people’s sense of value over time.
Their plans include working to improve loyalty to their brand by focusing on their core major franchises, regularly releasing AAA titles, but also strategically releasing mid-class titles with an eye on profitability. As for that multiplatform strategy, The report cites an AAA strategy that includes Nintendo platforms, PlayStation, Xbox and PC, along with a smart divide strategy for mobile, with the potential for PC releases.
With sales of Final Fantasy VII Rebirth and Final Fantasy XVI reportedly strong, but also under expectations, the platform-exclusive releases might have been among the reasons for these new multiplatform strategies. Their announcement emphasizes being able to have the widest audience for their games, stating plans to “build an environment where more customers can enjoy our titles in regards to major franchises and AAA titles including catalog titles”.
The newly-unveiled goals also include “Optimizing the development footprint in the Digital Entertainment segment” and getting to stable profits there. The company is also looking to open up additional cross-media strategies, seek out new markets, diversify some of their earning opportunities, and optimize costs and structures in their overseas offices.
