Things are not going well at Square Enix. According to reports by GamesIndustry, the company has lost as much as two billion dollars in stock value since the release of Final Fantasy XVI, and in addition, one of the key investors has reduced funding to the company.
Share price drop and FFXVI's failure to "reach sales target"
Square Enix is a publisher with an extensive portfolio of big-budget games, but its recent works have not been as popular as management had hoped.
- As a result, the company has seen its value plummet and its stock price fall.
- Before the release of FF XVI 7540 yen ($51.19) was needed to buy one Square Enix share; earlier this week, that price dropped to 5381 yen ($36.53) - this was the lowest since the beginning of the year.
- Moreover, sales of Final Fantasy XVI have not lived up to expectations.
Such results, along with previous market failures, have caused investors to be more concerned about Square Enix's direction. One of them - Sumitomo Mitsui Trust Asset Management - has decided to reduce its funding for the company, which could affect its future strategy.
Let's point out that currently FF XVI is only available on PlayStation 5. After at least six months of exclusivity, the game will also hit PC, which should at least slightly improve its sales and profitability for Square Enix.
Previous market failures
The publisher's troubles began much earlier. Sales expectations were not met by such titles as Marvel's Avengers, Marvel's Guardians of the Galaxy or this year's Forspoken.
Of the aforementioned games, the most popular among gamers was the story of Guardians of the Galaxy, which garnered a lot of positive reviews. Much less appreciated were Avengers or Forspoken.
The latter game's poor ratings and sales failure even caused the incorporation of its creators - Luminous Productions - into the ranks of Square Enix.