So Square Enix saw a sharp 15% decline in share price in Japan. This decline follows its latest earnings call, which was naturally a mixed bag of good news and bad news.
In Q2 2023, the company saw a 14% year-on-year increase, but profits were down, and not like kind of down, but rather 69% down. This sparked a lot of concerns from shareholders, leading to Square Enix going from ¥6,366 — $44.97 — a share on the Tokyo Stock Exchange on Friday evening at closing to ¥5,566 — $39.15 — when it opened.
According to Bloomberg (via VGC), this underwhelming financial status was partially due to the underperformance of the new entry to its biggest-hitting franchise — Final Fantasy. Supposedly, Final Fantasy 16 failed to meet the “high end of the company’s expectations.”
Square Enix CEO Takashi Kiryu placed blame on the slow adoption of the PS5 and called it a “limiting factor.” That’s not to say the newest entry is an entire failure — in a week, three million copies were shipped and digitally sold. This is more in line with Final Fantasy 7 Remake’s 3.5 million in 10 days, but it’s also understandably different.
While one is a remake of an established entry, one that holds a lot of nostalgia for quite a few FF fans, the other is a mainline game with loftier expectations as it’s expected to make use of what makes this console generation unique.