Final Fantasy Profits Falter: Square Enix Shares Surprising News
Square Enix has revealed that Final Fantasy 7 Rebirth and Final Fantasy 16 "did not meet expectations" in profits. This admission comes after a detailed financial results briefing held in May, now made public.
Final Fantasy 7 Rebirth and Final Fantasy 16 Underperforming in Profits
The Financial Statement
Square Enix president Takashi Kiryu discussed the performance of their major titles. "In the HD Games sub-segment, we released multiple new titles, including major titles such as Final Fantasy 16 and Final Fantasy 7 Rebirth, but profits unfortunately did not meet our expectations," he said. The initial sales of both Foamstars and Final Fantasy 7 Rebirth, released in Q4 of the last financial year, were "not as strong as expected."
The Timeline and Speculation
These comments were made in May when Square Enix announced an aggressive multiplatform strategy. Reports emerged that the company laid off several employees in its US and European offices. At that time, Final Fantasy 16 had been out for a year, and Final Fantasy 7 Rebirth for less than three months. Speculation about the sales underperforming in profits has been rampant among industry analysts.
Understanding the Underperformance
Sales Data and Official Acknowledgment
Circana's sales tracking showed Final Fantasy 7 Rebirth as the fourth top-selling game in the US but still lagging behind Final Fantasy 7 Remake. Kiryu’s statement is the first official acknowledgment of Final Fantasy 7 Rebirth and Final Fantasy 16 underperforming in profits. However, the exact degree of underperformance remains unclear, especially given Square Enix's notoriously high expectations.
Recent Developments and Future Prospects
Since the financial report, two significant events have occurred. Firstly, the Final Fantasy 14 expansion Dawntrail was released in July, which could positively impact overall profits in the next financial briefing. Final Fantasy 16 was released on PC yesterday, marking the company’s commitment to multiplatform releases.
What’s Next for Final Fantasy?
Potential Expansion to Xbox
Final Fantasy 7 Rebirth remains a PS5 console exclusive for now but might follow Final Fantasy 7 Remake with a PC release in the future. There's also a possibility that these games could come to Xbox. Final Fantasy 14 producer and director Naoki Yoshida mentioned the desire to "further deepen the relationship with Xbox gamers."