Square Enix President Takashi Kiryu Plans to Upgrade Existing IPs to AAA Status
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In a bid to boost profitability, Square Enix president Takashi Kiryu has unveiled plans to identify and upgrade existing properties to AAA status. The announcement came during an investor Q&A session held during the company’s financial results briefing in early August.
Revitalizing Promising Properties
Kiryu’s strategy to revitalize some of Square Enix’s most promising properties involves upgrading them to AAA status. This move is aimed at bolstering profits and comes in response to concerns raised by analysts about the company’s profitability. Square Enix has experienced a sharp decline in valuation, with a loss of nearly $2 billion since the release of Final Fantasy 16 in June.
Kiryu’s comments, first reported by VGC, indicate that Square Enix aims to turn around its sales slump by investing in upgrading existing IPs. These remarks follow earlier reports suggesting that the highly anticipated Final Fantasy 16 failed to meet the company’s high-end expectations.
Contrary to claims of underperformance, Kiryu stated that Final Fantasy 16’s sales were “in line with our expectations.” He also revealed plans to boost sales of the game on PlayStation 5, emphasizing the opportunity for Square Enix to establish greater depth in its gaming portfolio.
Diversifying the Portfolio
Kiryu’s vision for boosting revenue involves identifying existing IPs in Square Enix’s portfolio that can be upgraded to AAA status. This approach signifies a shift away from solely relying on the company’s iconic franchises to drive sales.
While high-profile franchises like the upcoming Final Fantasy 7 Rebirth will continue to hold their prominence in Square Enix’s portfolio, Kiryu believes that increased investment in lesser-known IPs could help turn the tide on the company’s recent sales slump. Moreover, this strategy could help dispel persistent rumors of Sony’s potential acquisition of Square Enix.
By diversifying its portfolio and upgrading existing IPs to AAA status, Square Enix aims to secure long-term profitability. This strategic shift demonstrates the company’s commitment to staying relevant and appealing to a broader audience.
As Square Enix faces challenges in the gaming market, president Takashi Kiryu’s plan to identify and upgrade existing IPs to AAA status marks a significant step towards revitalizing the company’s profitability. By embracing lesser-known properties and expanding the depth of its gaming portfolio, Square Enix aims to defy market expectations and secure its place as a major player in the industry.