Square Enix has revealed, as part of its latest financial report for the fiscal year ending March 31st, that it’s making some pretty significant changes to its platform strategy going forward. The company says that for its “HD” titles (see console/AAA releases) it will “aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs.”
This is a pretty big shift from the state of things now, where many of the company’s biggest recent launches, like Final Fantasy XVI and Final Fantasy VII Rebirth, are still exclusive to PlayStation platforms. These will make their way to PC eventually, but based on the wording given here it sounds as though the days of timed exclusivity for major releases from Square Enix is over.
Further down its in statements, the company also mentions that it’s working on initiatives to bring in more PC users, and it’s also working on how it sells and markets games which may speak to it moving away from publishing and marketing deals with the likes of PlayStation. Square Enix is also planning on expanding its cross-media efforts with a new division dedicated to exploring new markets, media formats and licensing opportunities for its IP, which sounds a lot like it’s been influenced by the success of things like Nintendo and Illumination’s collaboration for The Super Mario Bros. Movie.
It’ll be interesting to see how this new focus plays out, especially with the impending arrival of an updated Nintendo console that may feasibly be able to run games like Final Fantasy VII Remake/Rebirth, and with plenty of back catalogue across various platforms right now that could find new audiences elsewhere (*cough* bring the first Octopath Traveler to PlayStation *cough*).
SE’s latest financial report also accounts for the $220 million hit it’s taken in cancelling or rescoping projects already greenlit or in development for console and/or PC, which it revealed ahead of time but we now know was a part of this new initiative.
You can read the full report here, but below are the sections that are most relevant to this change in strategy (thanks Wario64):
Square Enix will "aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs"https://t.co/DDG1s0Vub4https://t.co/mCfWW970sl pic.twitter.com/Z8EqFZmi8T
— Wario64 (@Wario64) May 13, 2024
Shift to a multiplatform strategy
For HD titles, the Group will aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs. Especially, in regards to major franchises and AAA titles including catalog titles, it will build an environment where more customers can enjoy our titles.
In addition, it will also devise a platform strategy for SD titles that includes not only iOS and Android, but also the possibility of PC launches.
Furthermore, the Group will strive to maximize the acquisition of new users when launching a title and that of recurring users after starting management of game operation.
Building continuous customer contact points of our titles by stepping up digital sales
The Group will strengthen user flow of digital sales of new titles at the time of launch regarding the initiatives of promotion. In addition, it will generate the opportunity of generating revenue in our rich catalog titles’ line-up, which leads to strengthen its earnings base by expanding sales of catalog titles.
Moreover, the Group will engage in initiatives which focus on the acquisition of PC users.
Create the interaction with customers by increasing sophistication of publishing function
The Group will pursue integrated sales & marketing operations in Japan and make efficiency of publishing by consolidating the marketing functions that were previously spread across creative business units, expanding shared knowledge, and eliminating duplicate functions. Also, it creates a new reporting line in order to enhance collaboration between sales and marketing functions.
It will also address the increasing sophistication of marketing by leveraging first-party data, including through the utilization of CRM solutions and data analytics, when developing an ad campaign for HD and SD titles.
Generating the opportunity of new revenue by offering IP across a range of entertainment experiences
The Group will pursue a cross-media strategy capable of approaching new markets. Specifically, it will expand area of license business by establishing a new department focusing on IP business development at global markets.
In addition, it will build an organization which makes more active use of its IP by offering it across all media formats. The Group also hopes to generate synergies by integrating the organizations affiliated with its Merchandising segment.
