Square Enix, which has made a name for itself with the games it has developed for a while, is going through hard times these days. The fact that the games did not reach the expected interest and revenues caused great losses to the company. Looking for a solution to the bad situation.
Square Enix falters
In a meeting with investors, the company’s executives answered questions about the financial statements. This year, the Japanese company lost nearly $200 million in revenue due to the Avengers and Guardians of Galaxy games. To cover the loss, the firm had to sell all of its Western studios, such as Crystal Dynamics and Eidos Montreal, for a total of $300 million.
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Allocating a budget of 790 million dollars to game developments throughout the year, the company naturally has to pay maximum attention to the budget balance. In this regard, he discussed two options, such as a strategic partnership in the upcoming period or buying shares from the studios in order to transfer the burden of the games.
Square Enix is trying to maintain its profitability despite a 37 percent loss in revenue in the first quarter of the year. Many important projects will be invested in the upcoming new Final Fantasy games, such as virtual reality, NFT and blockchain games.
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