Square Enix Game Cancellations Likely as Publisher Records $140 Million Loss in 'Content Disposal' | Push Square
Square Enix appears to have cancelled or at least rescoped the size of multiple unannounced games as a result of an internal review into its development process, with a «content disposal» loss totalling 22.1 billion yen, or $141 million. As a result of the investigation, the publisher shall «revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources».
The internal study of Square Enix's development processes was revealed earlier this year when president Takashi Kiryu said: «We are reviewing from scratch what the organisational structure is to materialise the contents of the pipeline and what is best.» The result, as shared today, suggests the publisher has streamlined its future content output as it records a $141 million loss due to work on titles that'll no longer see the light of day. The unannounced games in question have not been confirmed.
According to VGC, Square Enix is eager to «reduce the amount of development it outsources to external studios, and wants to focus on in-house development for its more high-profile titles, with the aim being to increase both quality and profit margins».
The news follows the release of Final Fantasy VII Rebirth, which hasn't set sales charts on fire. While from the outset it would seem like a surefire mainstream success — like Final Fantasy VII Remake was in 2020 — the PS5 exclusive doesn't seem to have returned on the investment quite as much as the first entry. Square Enix now appears to be looking for more of a guaranteed mainstream success with its biggest games, meaning smaller projects may be cut.
Liam grew up with a PlayStation controller in his hands and a love for Metal Gear Solid. Nowadays, he can be found playing the latest and greatest PS5 games as well as supporting Derby County. That last detail is his downfall.
Seems like the smaller niche titles from them won't be a thing anymore, shame as I
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