Square Enix Reveals Final Fantasy 16 and 7 Rebirth Profit Woes

Square Enix has publicly expressed disappointment with the commercial success of both Final Fantasy 16 and Final Fantasy 7 Rebirth, stating that the profits from these major titles did not meet expectations. During a recent financial results briefing, company president Takashi Kiryu highlighted the issue of cannibalization, suggesting that the close release dates of the two games led to a dilution of their sales potential. Final Fantasy 16 launched in June 2023, followed by Final Fantasy 7 Rebirth in February 2024, both as PlayStation 5 exclusives. Despite tracking sales for Final Fantasy 16, Square Enix has not disclosed figures for Final Fantasy 7 Rebirth yet. The company is now planning a significant restructuring, focusing on a multi-platform approach while reevaluating its title portfolio to improve profitability in upcoming releases.

The underperformance of Final Fantasy 16 and Final Fantasy 7 Rebirth is largely attributed to cannibalization of sales due to their close release dates, alongside a portfolio management issue within Square Enix that failed to optimize sales across its HD Games sub-segment, leading to operational losses.

Final Fantasy is a seminal franchise in the gaming industry, renowned for its storytelling, intricate character development, and captivating gameplay. The recent titles, being part of a long-running series, have raised expectations among fans, making the commercial performance even more critical. Final Fantasy 7 Rebirth serves as the second installment in the Final Fantasy 7 Remake trilogy, a reimagining of the classic 1997 game that has been met with both excitement and scrutiny from dedicated fans. Established in 1987, the franchise continues to be a significant player in RPGs, yet it faces challenges in maintaining its momentum in a highly competitive market.