Square Enix wants to create “global blockbuster titles” and believes blockchain will “play a key role in future growth”
In a financial report confirming that Square Enix has “set new net sales records for the full year”, the Japanese company says it wants to “improve [its] global market presence” given the “aging demographics” to develop games primarily for the Japanese market.
In the statement, Square Enix said it was “essential to [its] company which [it] produce successful titles that address the global market.
“In order for our group to better focus on developing titles for the global market in this changing environment, we need to focus our limited resources on developing strong and robust titles,” the company said.
“We need to strengthen our presence in the global market by quickly establishing an organizational structure that allows us to consistently deploy high-quality content produced through selective and targeted allocation of resources, which requires the overhaul of our title portfolio. and studios.
“Achieving major growth in the video game industry is now difficult for companies that compete primarily in the Japanese market, given its aging demographics. As such, it is critical to our business that we produce blockbuster titles that speak to the global marketplace, which offers greater scale in terms of customers and sales volumes,” Square Enix added (thanks, NME).
“In other words, the Japanese market is no longer sufficient to achieve a level of revenue that allows us to recoup our development investments and generate a profit, and so we must approach our development efforts on the basis that we must succeed in the global market.”
Chairman Yosuke Matsuda further added that he believes “blockchain entertainment” will “play a key role in [SE’s] future growth strategy,” adding that the company had “identified AI, cloud and blockchain as priority investment areas.”
Just weeks after confirming it was selling its Western studios and intellectual property to Embracer Group for $300 million, Square Enix revealed plans to “create new studios” and acquire others.
The news came as part of the company’s recent financial presentation, which revealed that one of Square Enix’s “mid-term business strategy” initiatives is to “strengthen game development capabilities by building new studio, [mergers and acquisitions]etc.”
The company said the “objectives behind divesting certain foreign studios and intellectual property” – i.e. the reason it sold its three western studios – were to “achieve sustained growth through the selection and concentration of corporate sources, to better align the overseas publishing function with an organization in Tokyo, and to transform the group’s business portfolio”.