Square Enix has abandoned a number of in-development projects, resulting in a ¥22.1 bn loss for the financial year.to shareholders detailing a decision made back in March, as the company reviews its consolidated forecasts for the fiscal year ended March 2024.
These"content abandonment losses" are part of Square Enix president Takashi Kiryu's streamlining of the company's output of games,"with the intention of being more selective and focused in the allocation of development resources"."Because we possess strong IPs like the Dragon Quest and Final Fantasy franchises, I believe that we have tended to be overly reliant on certain gameplay styles or genres," he said.
He added:"The market is increasingly polarised between blockbuster and indie titles, but I feel that we have developed many titles that fell somewhere in the middle. I want to make clearer distinctions going forward."It's clear this is now taking effect, with Kiryu taking drastic measures to achieve his goals. Losses now should result in improved profits down the line.