In a notice to investors on Tuesday, Square Enix says that its next earnings report will see a significant loss in money due to canceled games at the studio.
According to the notice, Square Enix will report content abandonment losses of $140 million (¥22.1 billion) in it’s 2024 year-end earnings. This comes after a the company’s board of directors voted on March 27 to change its “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 Company is carefully reviewing its consolidated forecasts for the fiscal year ended March 2024 to assess the potential for impact from the above or other factors,” the notice reads. “Should revisions to its forecasts prove necessary, the Company will promptly disclose the same.”
According to the company, sales of Final Fantasy 16 were lower than expected. It’s most recent release, Final Fantasy 7 Rebirth, has also reportedly underperformed, according to analyst Daniel Ahmad.
Square Enix is scheduled to report its fiscal year 2024 year-end earnings on May 13.
What do you think of Square Enix losing $140 million on canceled games? For more Insider Gaming, read about Deliver Us Mars studio KeokeN laying off its entire staff.
But they’re still making FF7 Part 3? It makes no sense.
Nintendo should buy Square Enix.
What games were cancelled?
If they had released more Kingdom Hearts games instead of Final Fantasy they would be in a better place the younger generation is there for Kingdom Hearts they were hyped for 4 and Verum Rex but the first hasn’t had a update since 2022 and Verum Rex may never happen like Versus 13. Another problem is the games being exclusive to PS5 a console that’s still fairly new and without PC ports at launch it’s even worse.
If they want to make a ton of money here’s how. Reform the studio United Front Games have them finally make Sleeping Dogs 2 with Triad Wars online and run that like GTA Online it’s a more grittier game and those who won’t like GTA 6 will flock to this since so many want this. A remake of the first game wouldn’t hurt either unless it’s that financially bad. But Sleeping Dogs 2 with Triad Wars would be a seller. Get the popular streamers to play it too I could see Kai Cenat helping it blow up and its a game he would like just pay them.
The same thing happened at Bandai Namco and my guess Capcom could be next despite them raising expectations it could backfire on them. Sony as well since they’re refunding Stellar Blade apparently.
Maybe now the Final Fantasy weirdos will finally admit the franchise isn’t selling well they’ve been in denial over 16 now 7 rebirth it’s just captivating watching them be delusional.
This is their own fault! They kept listening to the wrong people the millennial boomers pushed this it’s their fault! They still won’t admit 16 wasn’t a good game, the remake of 7 has been awful, KH takes too long and 3 turned a lot of people off, Square won’t even bring back IP. Remaking Parasite Eve now seems like a huge risk that wouldn’t even be worth it there’s nothing else they can do to boost them up. Also don’t forget Forespoken was a flop, NEO, Valkyrie Elysium, Foamstars, and few other things they had no one really went crazy over. Also previously the flops of Guardians and Avengers. Time to start lining up buyers I think Nintendo would be a great place for them finally reunite with Monolith, make Super Mario RPG 2, and Square characters locked in for Smash.
Final Fantasy 15 is the best selling game in the franchise instead of reinterpreting 7 they should let Nomura finally make Versus 13 the Nomura fans would come out and people would remember the 15 characters.
Just bring Sleeping Dogs back especially if GTA 6 doesn’t live up to the hype. Triad Wars was ahead of its time a more grounded GTA online would be awesome set in Hong Kong.
I don’t know how Kingdom Hearts 4 will save them? They messed up big time. The Russia ban and the forced DEI is hurting them.
They have nothing that can save the, we all knew these games would flop it’s all their fault listening to the wrong audience people like sellout yongyea and maximilian dood.
Please sell off the Sleeping Dogs IP finally so we can get a sequel. Sell it to Yeezy they have money.
So if by some miracle Kingdom Hearts 4 actually sell well enough to keep the lights on will they finally put more focus on the franchise? It takes like 10 years for a Kingdom Hearts game but the other series get multiple releases per generation.
Instead of Forespoken they should have made a Sleeping Dogs 2
Next time make Verum Rex instead
They might want to drop a trailer now to show what’s coming because the rest of 2024 and 2025 look dry
If KH4 sells well I hope they finally double down on that. I miss the days or 358/2 Days, Birth By Sleep, and Dream Drop Distance those were great games getting a MMO, a prequel during the Foretellers and Keyblade War, Young Eraqus and Xehanort game, a Koei Tecmo warriors like, all of that would be awesome for the series. It would also be great for the series to lean more into the T rating and move away from the overly kiddy Disney stuff finally embrace the more anime style. A Lea game would be awesome too.
Square Enix could make GTA money if they brought Sleeping Dogs back. Apparently they still own it. GTA Online took off and is now 11 years in existence that could be Triad Wars right now. If GTA 6 goes the way of Saints Row 2022 this is the biggest missed opportunity. If that takes off then just make smaller titles on the side.
Square did this to themselves actually all the companies did this to themselves losing money.
If they never got involved in the Russia/Ukraine war they would be fine. If they took Russia’s side over Ukraine they would be better if dc because the money is in Russia an dc they lost that market by picking Ukraine.
I don’t know why Square Enix never made anime games they published some big series like FMA and Soul Eater those would be awesome games Goblin Slayer and Redo Of Healer would be massive. Probably a ton of others I haven’t mentioned from Gangan. I mean get Cyber Connect in there to make those or have Arc Sys make fighting games.