Square Enix has told shareholders in its latest earnings report that new games are either “marked successes” or “marked failures” — there’s no in-between. The company is planning to overhaul video game development with the aim of improving the quality of its games.
Square Enix is reviewing how it develops games
Square Enix says that the shift towards digital content and downloads alongside other “technological advances” have had a major impact on the market. Digitalization, in particular, has led to a rise in diverse business models including free-to-play. As a result, new games are either successful or bomb commercially, with players sticking to “a handful of major titles.”
“Monetization methods such as free-to-play, microtransactions, and subscriptions have also given rise to a greater diversity of business models outside the confines of traditional one-off sales,” Square Enix wrote. “As such, the consumer game market continues to grow. New releases tend to be met with either marked success or marked failure as players throng to a handful of major titles.”
Separately, Bloomberg reports that Square Enix is radically changing how it develops games in order to improve their quality. The company is currently reviewing its internal structure, and plans to announce a new structure by Spring 2024.
