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Square Enix is shifting to a multiplatform strategy

orzkare

orzkare

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Apr 9, 2020
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edit:
- New Medium-term Business Plan (FY2025/3-FY2027/3)
- Financial Results Briefing Session Fiscal Year ended March 31, 2024pdf
- Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (Japan GAAP)pdf

Diversify earnings opportunities by strengthening customer contact points
- Shift to a multiplatform strategy
For HD titles, the Group will aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs. Especially, in regards to major franchises and AAA titles including catalog titles, it will build an environment where more customers can enjoy our titles. In addition, it will also devise a platform strategy for SD titles that includes not only iOS and Android, but also the possibility of PC launches. Furthermore, the Group will strive to maximize the acquisition of new users when launching a title and that of recurring users after starting management of game operation.

- Building continuous customer contact points of our titles by stepping up digital sales The Group will strengthen user flow of digital sales of new titles at the time of launch regarding the initiatives of promotion. In addition, it will generate the opportunity of generating revenue in our rich catalog titles' line-up, which leads to strengthen its earnings base by expanding sales of catalog titles. Moreover, the Group will engage in initiatives which focus on the acquisition of PC users.
- Create the interaction with customers by increasing sophistication of publishing function The Group will pursue integrated sales & marketing operations in Japan and make efficiency of publishing by consolidating the marketing functions that were previously spread across creative business units, expanding shared knowledge, and eliminating duplicate functions. Also, it creates a new reporting line in order to enhance collaboration between sales and marketing functions. It will also address the increasing sophistication of marketing by leveraging first-party data, including through the utilization of CRM solutions and data analytics, when developing an ad campaign for HD and SD titles.
- Generating the opportunity of new revenue by offering IP across a range of entertainment experiences The Group will pursue a cross-media strategy capable of approaching new markets. Specifically, it will expand area of license business by establishing a new department focusing on IP business development at global markets. In addition, it will build an organization which makes more active use of
its IP by offering it across all media formats. The Group also hopes to generate synergies by integrating the organizations affiliated with its Merchandising segment.
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StevieP

Member
Oct 27, 2017
3,329
I wonder if this will affect the FF7 trilogy moneyhat deal, or if they paid their way out of it based what's occured recently
 
Celestial Descend

Celestial Descend

Corrupted by Vengeance
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Aug 15, 2022
3,543
OP you forgot "aggressively" in the title

StevieP said:
I wonder if this will affect the FF7 trilogy moneyhat deal, or if they paid their way out of it based what's occured recently
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A more likely scenario is Sony look at FF7 Rebirth sales (and the sales of Forspoken, The Babylon's Fall and Foam Master) and decide it's not worth it.
 
Kuro

Kuro

Member
Oct 25, 2017
21,146
So fixing their multiplatform strategy and messy marketing. Sounds like a step in the right direction. Kiryu knows whats up.
 

reksveks

Member
May 17, 2022
3,576
Phendrift said:
Oh shit forgot their results are now, Rebirth numbers?
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can't find it in the attached file; only one reference to Rebirth

In the HD (High-Definition) sub-segment, consolidated net sales for the fiscal year ended March 31, 2024 increased compared with the previous fiscal year due to the release of titles including "FINAL FANTASY XVI," "FINAL FANTASY PIXEL REMASTER," "DRAGON QUEST MONSTERS: The Dark Prince," and "FINAL FANTASY VII REBIRTH." However, operating losses grew due to higher development cost amortization and advertising expenses, as well as higher content valuation losses versus the previous fiscal year. In the MMO (Massively Multiplayer Online) Game sub-segment, net sales and profits declined compared with the previous year. In the Games for Smart Devices/PC Browser sub-segment, net sales and profits declined compared with the previous fiscal year as the June 2023 launch of "Dragon Quest Champions" and the September 2023 launch of "FINAL FANTASY VII EVER CRISIS" were unable to compensate for factors including weak performances by existing titles. Net sales and operating income in the Digital Entertainment segment totaled ¥248,109 million (an increase of 1.0％ from the prior fiscal year), and ¥25,468 million (a decrease of 38.3％ from the prior fiscal year), respectively.
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Net sales for the fiscal year ended March 31, 2024 totaled ¥356,344 million (an increase of 3.8％ from the prior fiscal year), operating income amounted to ¥32,558 million (a decrease of 26.6％ from the prior fiscal year).
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and the target was 360,000 for revenue and 55m for OI. Small miss on revenue massive miss on the OI
 
Homura

Homura

▲ Legend ▲
Member
Aug 20, 2019
6,160
Remake and Rebirth are totally going to be ported to Switch 2 then.
 

StevieP

Member
Oct 27, 2017
3,329
Celestial Descend said:
OP you forgot "aggressively" in the title


A more likely scenario is Sony look at FF7 Rebirth sales (and the sales of Forspoken, The Babylon's Fall and Foam Master) and decide it's not worth it.
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A beneficiary platform holder isn't going to reneg on a previously signed 3-title deal. That's definitely not how it usually works.
 
Afrikan

Afrikan

Member
Oct 28, 2017
17,206
I'm guessing graphics won't be as ambitious going forward. All good, they tried for a while now and we have quite a few games that will look good on future consoles (not just PS5 Pro) through BC.
 
YukiroCTX

YukiroCTX

Prophet of Regret
Member
Oct 30, 2017
3,037
Nice, Hopefully FF games being excellent in quality is able to be continue through success of expanding platforms and sales. I wouldn't be surprised if they break records next time. Hearing rebirth doing pretty badly when it's such an excellent game sucks.
 
rainier

rainier

Member
Oct 19, 2023
97
Interesting that they call out Nintendo. I wonder if we could see a simultaneous launch of the next FF on steam, ps5 and switch 2.
 
GrrImAFridge

GrrImAFridge

ONE THOUSAND DOLLARYDOOS
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Oct 25, 2017
9,710
Western Australia
The fact it has taken Squeenix this long to realise that accepting moneyhats for temporary exclusivity is actually more harmful than launching day-and-date across all relevant platforms, thereby ensuring the game in question is available to as many as people at possible at the height of its position in the public consciousness, is actually impressive in how confoundingly stupid it is.
 
Izanagi89

Izanagi89

"This guy are sick" and Corrupted by Vengeance
Member
Oct 27, 2017
15,042
Man, whatever helps Square make money and thrive. I wanna see my fav be there right on top 🙏

zolee said:
this also reads like live service
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They run one of the biggest MMOs out there as well as numerous mobile games too. They're already in the live service business.
 
diablogg

diablogg

Member
Oct 31, 2017
3,401
Good. Rebirth is one of the best JRPGs I've played so I want Square to continue to make great games, it should 100% been available on PC and Xbox at release (also Square, don't send games to die on EGS.)
 
Linus815

Linus815

Member
Oct 29, 2017
20,097
Great. Now, hopefully FF16 and Rebirth PC ports are actually good, that would be a nice first step.
 
cw_sasuke

cw_sasuke

Member
Oct 27, 2017
26,586
Feels like they really needed to wait for Switch 2 to full embrace multi platform for their big games.
 
GhostTrick

GhostTrick

Member
Oct 25, 2017
11,500
Well, they took time to realise.
It only costed them their biggest franchise.

Now we'll see how it'll unfold:
- Will they drop completly these dumb deals ?
- Will they release competent versions ?
- Will they drop their stupid pricing ? (80€ for a game in the standard edition is insane).

It'll take time since now they have to build a userbase elsewhere (if only they started sooner).
 
Philippo

Philippo

Developer
Verified
Oct 28, 2017
7,975
"the Group will strive to maximize the acquisition of new users when launching a title"

Good, seems like they are gonna focus they marketing efforts more, this should work well together with their shift to less but better games (which will now be marketed to a broader audience).

They mention catalogue titles, so I wouldn't be surprised if, for example, Switch 2 gets XIII trilogy and XV on top XVI and VIIR. Hell, maybe even XIV.

Rooting for you SE!
 

crimmy88

Member
Aug 7, 2023
277
GrrImAFridge said:
The fact it has taken Squeenix this long to realise that accepting moneyhats for temporary exclusivity is actually more harmful than launching day-and-date across all relevant platforms, thereby ensuring the game in question is available to as many as people at possible at the height of its position in the public consciousness, is actually impressive in how confoundingly stupid it is.
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Considering SE's history of losing big money during the mid-2010s, its hard to blame them in taking safer moneyhat deals. Im glad this means SE is no longer reliant on these deals and can now take risks with their IPs. Now, hopefully they fix their PC ports.
 
Rickyrozay2o9

Rickyrozay2o9

Member
Dec 11, 2017
4,643
Definitely great news but how are they going to port HD titles to all platforms including Nintendo without a loss of quality or redesign? even with the switch 2 can they even port games like Rebirth and FF16?
 

Rahkeesh

Member
Jun 20, 2022
4,182
Amusing to think that iOS/Android are "Standard Definition" now.

Even if you blew up Sony exclusivity, I'm skeptical they can pull off Rebirth or XVI on Switch 2, seems like one of those "impossible ports" requiring a lot of work, never mind an install occupying just about all of your 256gb storage. I read this more as them scaling back graphics ambitions somewhat for XVII so they can launch day and date on Switch II.
 
grumpybat

grumpybat

Member
Apr 12, 2021
558
USA
Sounds reasonable. AAA exclusives seem like a pointless risk anymore. Really hoping this is the bulk of what's changing, and that they're not killing off their AA development.
 
Kida

Kida

Member
Oct 27, 2017
1,904
Yeah they really need every big title to have a great Switch 2 version going forward.
 
Kuro

Kuro

Member
Oct 25, 2017
21,146
Rickyrozay2o9 said:
Definitely great news but how are they going to port HD titles to all platforms including Nintendo without a loss of quality or redesign? even with the switch 2 can they even port games like Rebirth and FF16?
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Yes the Switch 2 can handle both games. Its on modern architecture, has plenty of RAM, and can lower settings and resolution in tandem with DLSS to run those games. It likely won't have 60fps performance modes but it should be an even better state than something like The Witcher 3 on Switch.
 
Desma

Desma

"This guy are sick"
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Oct 27, 2017
5,362
Guess I don't have to worry about them making Apple Arcade deals
 
Lord Fanny

Lord Fanny

Member
Apr 25, 2020
26,253
Rickyrozay2o9 said:
Definitely great news but how are they going to port HD titles to all platforms including Nintendo without a loss of quality or redesign? even with the switch 2 can they even port games like Rebirth and FF16?
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They will probably just exclude the Switch 2 for games that aren't viable, or it will be late ports to put extra work in. It'll probably be like day 1 PS, PC, Xbox and then Switch 2 only if possible
 
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