Square Enix is expecting approximately ¥22.1 billion ($140 million) in content abandonment losses for the fiscal year ended March 2024 as part of a new business approach where it will be more “selective and focused” toward the kinds of video games it makes, according to a new statement that the company shared today titled “Notification of Recognition of Extraordinary Losses.” The statement comes a few weeks after analysts began warning that the sales of FFVII REBIRTH, Square Enix’s latest big-budget RPG, have been under-performing.
The statement in full:
At the meeting convened on March 27, 2024, the Board of Directors of Square Enix Holdings Co., Ltd. (the “Company”) voted, in light of the myriad changes underway in the environment surrounding its Group, to revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources. As a result of a close examination of the Group’s development pipeline undertaken in keeping with this revised approach, the Company expects to recognize approximately ¥22.1 billion in content abandonment losses on its books for the fiscal year ended March 2024.
Regarding FFVII REBIRTH sales:
Also, not to be that guy, but Rebirth is underperforming sales wise (not that sales performance is related to what that guy said lol)
— Daniel Ahmad (@ZhugeEX) April 11, 2024