Square Enix Holdings Co (OTC:SQNXF) is undergoing a company-wide reboot in response to a notable profit dip, despite a slight uptick in sales in the Digital Entertainment segment.
The company reported a ¥8.1 billion (approximately $51.9 million) operating loss in the HD games subcategory, particularly with PlayStation 5-exclusive titles like Final Fantasy 16 and Final Fantasy 7 Rebirth.
Specifics on Final Fantasy 7 Rebirth’s sales figures weren’t disclosed. Square Enix acknowledged the challenge in achieving profitability. The company suffered from an “incomplete journey to better profitability in HD game development’.”
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The company also admitted that some titles “failed to live up to profit expectations, especially outsourced titles and some AAA titles.”
To counter these setbacks, Square Enix introduced a three-year strategy called “Square Enix Reboots, and Awakens,” aiming for platform diversification. ...