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CRISIS CORE FINAL FANTASY VII REUNION Announcement Trailer 1 46 Screenshots
picture: Square Enix

Square Enix has been a mainstay in the industry for years, but the Japanese publisher and developer appears to be struggling, reporting slumping financial results in the first quarter of 2023 (in addition to the massive success of its MMORPG, Final Fantasy XIV). Moreover, after the publication of these results, European players The company is looking to “improve capital efficiency” by selling stakes in its studio, the report said.

This comes from an internal conference call after sharing the results with analysts at MST Financial David Gibson Break up the discussion on Twitter.

Square Enix recently sold some of its Western studios to the Embracer Group, but this is only the first phase of the company’s plans. The next stage is for Square Enix to diversify the studio’s capital structure and be more selective about resources as costs rise.

Resources will be concentrated on games developed in Japan, with European and American studios being the most affected.

One way Square Enix sees improving capital efficiency and offsetting rising costs is to sell some of the studio’s stake. Gibson suspects that companies such as Sony, Tencent and Nexon will be interested parties. This means that Square Enix will not sell the studio entirely, but part of it,

Interestingly, once the deal with Embracer Group closes, Square Enix will receive $1.4 billion and potentially eliminate any debt they have, Gibson said.

Shares of Square Enix rose after the conference call. At the time of writing, Square Enix Holdings Ltd. is up 11% today.

The company will release a slew of releases by the end of the year, including on the Switch. DioField Chronicle launches September 22, followed by NieR: Automata’s Switch port in October, farming sims Harvestella and Tactics Ogre: Rebirth in November, and Dragon Quest Treasures in December. Crisis Core: Final Fantasy VII Reunion will also be released in winter.

It also released two fantastic games earlier this year, as well as long-awaited ports – Triangle Strategy, Live A Live, and Chrono Cross. So it’s been a busy year for Square Enix. We’ll have to wait and see what happens to the company for the rest of the year.

What do you think of this announcement? Do you think Square Enix will sell any of its studio shares?let us know.

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