Square Enix can sell more studios

Following its latest earnings call, Square Enix is ​​reportedly looking to sell shares in some of its development studios in an effort to devote more resources to picking up titles.

Based on Game industry analyst David Gibson, the publisher will review its portfolio to see which firms will want to retain full ownership or offer shares to other companies of interest. As Gibson explains, Square Enix sees this strategy as a way to devote “resources primarily to Japanese titles” and can see interest from Sony, Tencent, and Nexon.

Some of the studios Square Enix currently manages include the four Creative Business Units responsible for Final Fantasy, Kingdom Hearts, and smaller titles, Luminous Productions, which are currently developing Forspoken and Tokyo RPG Factory. As Gibson noted, Square Enix’s strategy is unusual because it has no debt and more than enough operating cash to fund game development.

“Post [Crystal Dynamics / Eidos Montreal] sold, the company will have [$1.4 billion] cash and zero. Gibson explained.

The earnings call also solves the problem Square Enix’s recent sale of Western studios Eidos Montreal and Crystal Dynamics to Embracer Group. According to Gibson, these studios “cannibalized” revenue from the rest of the corporation as a whole.

That sale is “Phase 1” of Square Enix’s plan, while Phase 2 will include a portfolio review. The publisher also confirmed plans to invest in blockchain and NFT technology, ideas contrary to the topic one of its best-selling games, Final Fantasy VII.

Square Enix has a lot of games lined up for the future, which could make its proposition appealing to potential investors. One Tactics Ogre . overhaul is on the way, Forspoken will be released next yearand Harvestella looks delicious. In addition to those games, the company’s heavyweight Final Fantasy franchise will see the launch of Final Fantasy XVI in the Summer of 2023 and Final Fantasy Rebirth in winter 2023.

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