Square Enix Wants to Upgrade Some Existing IPs to AAA Status - NewsWilliam D'Angelo , posted on 19 September 2023 / 4,224 Views
Square Enix president Takashi Kiryu speaking during Q&A session at the beginning of August that was recently published revealed the company is looking improve the profitability of the company and is looking to into upgrading some existing IPs to AAA status.
"I want to improve our profitability," said Kiryu. "I see ample room for improvement in our operating profit margin and would like to start by working primarily on our HD games.
"In addition, rather than solely attempting to create brand‐new IPs, we intend take a nuanced approach to investment whereby we also identify existing IPs with the potential to be upgraded to AAA status, taking ROI [retun on investment] into account as well. In so doing, we hope to establish greater depth to the layers of our portfolio.
"Lastly, I would also like to continue to consistently grow our Publication, Amusement, and Merchandising segments as sources of recurring earnings, thereby enabling our Group to mitigate the volatility of the HD Game sub‐segment and improve its profitability."
It was recently reported the market value for Square Enix has dropped by nearly $2 billion since the release of the PlayStation 5 excusive Final Fantasy XVI. The stock price for Square Enix has dropped by over 30 percent from a peak of $26.50 per share on June 21 down to $18.18 last week.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.