Square Enix: Final Fantasy VII Rebirth and Final Fantasy XVI Profits 'Did Not Meet Expectations' - News
by William D'Angelo , posted on 01 October 2024 / 4,631 Views
Square Enix in a results briefing held on May 13 that was released today revealed Final Fantasy VII Rebirth and Final Fantasy XVI did not meet its sales expectations.
"In the HD Games sub-segment, we released multiple new titles, including major titles such as Final Fantasy 16 and Final Fantasy 7 Rebirth, but profits unfortunately did not meet our expectations," said Square Enix president and representative director Takashi Kiryu.
Kiryu added, "We recognize that issues remain in the Digital Entertainment segment. The HD Games sub-segment failed to better its profitability, posting operating losses in every year of our previous medium-term plan. In addition to this, we did not manage our title portfolio across the company as well as we could have, which I believe resulted in opportunity losses due to cannibalization between our own titles."
"In the case of the HD Game sub-segment, sales of individual games will remain the key variable, but we believe that we will be able to exercise some degree of control over that volatility by carefully curating our pipeline over the next three years," Kiryu stated. "By also working steadily to improve our profitability, we intend to offset the weakness in SD games to achieve overall profitability."
Kiryu concluded "we determined that we should rethink how best to deliver some of the titles we had under development to our customers."
Final Fantasy XVI released in June 2023 and Final Fantasy VII Rebirth released in February 2024. Both games launched exclusives on the PlayStation 5. Final Fantasy XVI did release this week on PC Steam and Epic Games Store.
Square Enix did announce Final Fantasy XVI shipped three million units in its first week. This figure included digital sale. However, the company have yet to announce any sales figure for Final Fantasy VII Rebirth.
Thanks, IGN.
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.