Income from Square Enix’s games in Japan is no longer sufficient to cover development costs and investment.

The publisher stated this in its financial report for 2022, citing that it had to sell its Western studios to Embracer because they focused only on the development of “big” games, which “posed a serious risk of cannibalization” of Square Enix’s limited resources. . However, the company has realized that it needs a global presence to remain profitable and wants to make games that allow it to compete in the global market.

Many of the company’s recent games have flopped

“In order for our group to better focus on developing titles for the global market in a changing environment, we need to focus our limited resources on developing strong and robust titles,” the report reads. Unfortunately, several of the Western games released by the Japanese company have failed on the market in recent years, the latest failure being Babylon’s Fall developed by PlatinumGames. Based on what we have seen so far, people are worried about the exclusive Forspoken of the PS5 console.

Interestingly, Square Enix’s Japanese games are among its most successful titles worldwide. You don’t have to go any further than Final Fantasy.

Source: PlayStation LifeStyle