A significant shareholder of Square Enix, 3D Investment Partners, has publicly criticized the company, urging a major reassessment of its management strategies amid declining sales and profit margins. In a comprehensive 100-page report, the investor highlighted the company's stagnating performance, attributing it to platform exclusivity and increased development costs. While Square Enix has begun to diversify its game releases by moving titles like Final Fantasy 16 to Xbox, concerns over its reliance on the Japanese market and lack of growth internationally persist. The shareholder is pushing for a new direction as Square Enix navigates through challenges, including restructuring efforts that have led to layoffs and a decreased focus on overseas project development.

What are the major concerns raised by Square Enix's shareholder about the company's future?

The major concerns include stagnant profit margins, poor sales performance of key titles, and an over-reliance on the domestic Japanese market. The shareholder also criticized the company’s current management strategies and called for a clear forward-looking vision to enhance its global growth.

Square Enix is known for its iconic franchises, particularly Final Fantasy and Dragon Quest, which have shaped the RPG genre and gained a massive following worldwide. The company's history of innovative gameplay and storytelling has made it a giant in the video game industry. However, the recent decline in sales and critical reception of some titles reflects a need for revitalization and fresh strategies, especially as it adapts to the competitive landscape filled with both established and emerging game developers.