In recent years, Square Enix has been on a downward trend due to a series of poor decisions and the moderate or failed results of some of its major video games source. The situation has worsened after the Japanese company divested most of its Western operations, selling studios to Embracer Group, and then with its attempts in the NFT and games as a service sector. This has impacted the finances, and the stock price is plummeting.
Square Enix's stock price keeps falling
According to a report from Takashi Mochizuki, a reporter for Bloomberg, the stock price of Square Enix on the Japan Stock Exchange closed at less than ¥5000 JPY, $33 USD, marking the lowest price since May 22, 2020. Reviewing Square Enix's stock history, we find that after the surge in its stocks in April 2023, everything has been downhill for the Japanese company despite the release of a AAA title like Final Fantasy XVI.
Why did the market lose confidence in Square Enix?
In addition to selling its Western studios due to a lack of major success with its franchises, Square Enix entered into exclusivity contracts with PlayStation for important titles like Final Fantasy VII Remake, Final Fantasy VII Rebirth, and Final Fantasy XVI, which have had good but slow results and ultimately seem not to meet investors' expectations.
At the same time, the Japanese company appears to lack a defined direction source as it hesitates to continue making purely Japanese-themed video games in an attempt to conquer the West. However, this change has generated more doubts than certainty. Likewise, the interest in NFTs and games as a service has played a trick on the perception of the company.
Recently, an official approach with Xbox was announced, resulting in the arrival of Final Fantasy XIV to the Microsoft ecosystem. Similarly, rumors from reputable sources indicate that Square Enix will abandon its console exclusivity strategy, and the important titles it has in the market in recent years will indeed come to Xbox.
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