Final Fantasy 16 failed to meet Square Enix’s high-end expectations
Final Fantasy XVI is the latest entry in the long-running RPG franchise. It represents a new direction for the series, and the game earned itself considerable critical acclaim upon release, scoring a 9 here on Destructoid. This hasn’t quite translated into financial success, at least according to the latest reports following the release of Square Enix’s first-quarter financial briefing.
Square Enix’s financial report reveals that although net sales are up thanks to the release of new titles such as Final Fantasy XVI, operating income is down partly due to amortization of development cost. According to Bloomberg, Square Enix President Takashi Kiryu told analysts on a post-earnings call that Final Fantasy XVI did not meet the high end of the company’s expectations.
Though Final Fantasy is one of Square Enix’s flagship franchises, it appears it is not performing well enough to meet the company’s goals. In a note to investors (per Bloomberg), Citigroup analyst Junko Yamamura stated that “the Final Fantasy franchise’s profitability is weakening and improvements will take time.” This doesn’t mean that Final Fantasy XVI was a complete failure, as it managed to sell 3 million units shortly after launch.
The financial report also reveals that net sales are down year-on-year for its MMOs, though the dip is easily attributed to Endwalker launching last year and no new expansion until next year’s Dawntrail. PC browser and mobile games were unable to “offset weak performances from existing titles.” News of Square Enix’s declining operating income has affected the value of the company’s stock, driving “the stock down as much as 15% in Tokyo” according to Bloomberg.
Square Enix isn’t about to give up on Final Fantasy just yet. Part of
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