Square Enix To Establish and Acquire More Studios

During the earnings call for FY2022, Square Enix revealed its business strategy detailing objectives behind the sale of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal to the Embracer Group.

The company shared that the sale of the studios will help it "optimize [its] resource allocation so that [the company] can develop appealing titles better aligned to customer needs while simultaneously bolstering [its] profitability".

Square Enix also noted that it plans to increase global revenue from future titles developed and launched by both Japanese and overseas studios owned by the company. In order to achieve this, Square Enix is said to revise the company's governance structure as well as advance its integrated group management.

Apart from that, Square Enix reiterated that intends to invest more in technologies like blockchain, AI, and cloud to facilitate the launch and monetization of new businesses.

To achieve these goals, the company intends to strengthen its IP ecosystem, especially by "establishing new studios" and doing M&A activity. Besides, the company plans to create new IPs as well as enhance its global publishing function by appointing a chief publishing officer and speeding up decision‐making with the help of integrated group management.

The company also spoke out on its blockchain initiatives reminding of the formation of its Blockchain Entertainment Business Division and emphasizing the success of the first season of NFTs linked to the comic Shi‐San‐Sei Million Arthur which ended in March 2022.

"Encouraged by the results and feedback from our NFT business, we have decided to produce a second season," the company announced. "Our plan is to incorporate game content into our service and to leverage the development and operational expertise we have amassed in our existing businesses to explore the potential of earnings structures, breadth of play, and NFT ownership experiences in the NFT business."

You can learn more about the company's objectives here. Also, don't forget to join our new Reddit page, our new Telegram channel, follow us on Instagram and Twitter, where we are sharing breakdowns, the latest news, awesome artworks, and more.