Square Enix Aims to Upgrade Existing IPs to AAA Status

In an effort to boost its profits, Square Enix president Takashi Kiryu has announced plans to identify existing properties that can be upgraded to AAA status. Kiryu discussed this strategy during an investor Q&A session held in early August for the company’s financial results briefing meeting.

As reported by VGC, Kiryu’s comments reveal that Square Enix intends to revitalize some of its most promising properties by elevating them to AAA status. This strategy is aimed at addressing concerns about the company’s profitability, particularly after a significant drop in valuation following the release of Final Fantasy 16 in June, resulting in a loss of nearly $2 billion in value.

Contrary to earlier reports suggesting that Final Fantasy 16 failed to meet expectations, Kiryu states that its sales were in line with their projections. Additionally, Kiryu announced plans to enhance sales of the game on PS5. He believes that Square Enix can achieve higher profits by adding greater depth to its gaming portfolio, rather than solely relying on its high-profile franchises.

While iconic franchises like the upcoming Final Fantasy 7 Rebirth will continue to hold a prominent position in Square’s portfolio, Kiryu’s remarks indicate a shift away from overreliance on these properties to drive sales.

Investing more in lesser-known IPs presents an opportunity for Square Enix to reverse its recent sales decline and potentially deter persistent rumors of Sony acquiring the company.