Today, Square Enix reported its financial results for the fiscal year ending March 31st. The Japanese publisher's performance was poor, as it narrowly missed its revenue target and also significantly missed its operating profit target, with the latter decreasing by 26.6% year-on-year. last year.
However, Square Enix today also announced a completely new medium-term management plan that will run until March 31, 2027. The plan is titled “Square Enix Reboots and Awakens – 3-years.”
Building a foundation for long-term growth. The main changes compared to the studio's previous plans are an aggressive multi-platform strategy and a focus on quality over quantity.
- Regarding HD titles, we will actively promote a multi-platform strategy that includes Nintendo platforms, PlayStation, Xbox, and PC. In particular, we will create an environment where more customers can enjoy AAA titles, including major franchises and catalog titles.
Additionally, for SD titles, we will formulate a platform strategy that includes not only iOS and Android, but also PC. Furthermore, we will strive to maximize the acquisition of new users when a title is released and the acquisition of repeat users after the game begins operations. - Our group will promote a “transition from quantity to quality” as a medium- to long-term approach to our DE business portfolio. To this end, we will work to build an optimal portfolio by striking a balance between “product-out,” which maximizes the imagination of our employees, and “market-in,” which takes advantage of customer voices and opinions. Data that informs development efforts.
The company aims for a regular release pace and will focus its development efforts and investments on titles with great potential to be loved by customers for many years.
Regarding the multi-platform strategy, Square Enix ultimately abandoned the PlayStation exclusive debut of the premier series due to the failure to achieve overwhelming commercial launches of Final Fantasy XVI and Final Fantasy VII Rebirth. It is highly likely that Both games, although well-received by critics (particularly FFVII Reborn), did not sell as well as the publishers had hoped, as they were only released for the PS5. In the future, Square Enix is likely to strive daily to release games on all available platforms.
Square Enix has set the following financial goals for the period from 2025 to 2027.
- The consolidated operating profit margin for the fiscal year ending March 2027 is 15%.
- Three-year strategic investments (growth investments or shareholder returns) totaling up to 100 billion yen ($641 million), including Square Enix's share buyback from May 14th to May 14th. It includes up to 20 billion yen ($128 million) for potential. 2024 and May 13, 2025.
- Our group aims for an ROE (return on equity) of 10% or more and will shift to a management style that is conscious of capital efficiency.
