Square Enix currently finds itself at a crossroads after recently revealing that it plans to slowly drift away from their mid-sized offerings to focus more on “larger AAA console games,” which effectively spells doom for experimental titles such as Octopath Traveller II and Valkyrie Elysium.
The report, courtesy of MST Financial’s David Gibson, claims Square Enix’s directional shift will be a slow burn, taking a few years before the ramifications ripple outward to the discerning gamer.
Regardless, this has the internet equal parts curious and worried about their favorite franchises.
Square Enix says it will focus less on mid sized games and more on AAA titles going forward.
"Focused strategy – less mid sized, more larger AAA console games, company said will take several years to impact" via @gibbogame pic.twitter.com/glQd00rvLs
— Genki✨ (@Genki_JPN) August 7, 2023
On the one hand, there’s an undeniable allure to behemoths like Final Fantasy XVI or Dragon Quest, their expansive and immersive realms promising a depth of experience that’s often hard to rival. But on the flip side, we can’t dismiss what the smaller titles bring to the table either. They might not boast the sales figures of their big-budget brethren, but their charm can often provide a welcome reprieve from the grandiosity of AAA titles.
However, one can’t deny the economics at play here. Larger games, while a massive gamble, have a much higher ceiling in potential sales. Whereas Triangle Strategy and Octopath Traveller might make a lot of fans in its niche happy, they don’t pay for the bills and put food on the table, or so to speak.
The fact remains that AAA titles, when done and marketed right, like the mainline Final Fantasy games and the remakes, offer much more in return.
Of course, we can’t forget dismiss the high level of risk either. Marvel’s Avengers, Marvel’s Guardians of the Galaxy, and even Outriders, all of which are AAA games that required significant investments, were largely considered commercial failures as well. Their stellar performance saw the company parting ways with Crystal Dynamics along with its western subsidiaries.
On that note, Luminous Productions disbanded after Square Enix, once again, saw that the numbers for Forspoken were no longer worth the money spent on the game’s development.
Perhaps Square Enix’s strategy is reminiscent of Hollywood’s recent obsession with blockbuster franchises and toy-themed movies. There’s an overarching sentiment that bigger is inherently more profitable. But as Square Enix’s game sales targets soar, there’s a tangible concern that the company might forsake gems in a quest for more lucrative returns.
Lest we forget, most JRPGs outside of the numbered Final Fantasy titles and the expanded Final Fantasy 7 universe aren’t considered AAA productions.
A deep dive into this scenario brings forth a critical question: Is it all about the format and genre? The gaming industry has seen a perceptible shift towards action games in recent years, often at the expense of games with heavy role-playing elements. But the success of turn-based games like Baldur’s Gate 3 and Persona 5, which both defied all the expectations, suggests that with the right blend of passion and resources, the turn-based format can indeed triumph.
It’s hard not to salivate at the possibility of a Final Fantasy Tactics game with a AAA budget doing well should Square Enix believe in such an endeavor.
Moreover, the multiplatform launch strategy seems to hold the key to maximizing profits. Releasing a game exclusively on one console, as was the case with Final Fantasy 16 for the PlayStation 5, might restrict its initial sales potential. The noted drop in Square Enix’s stock price in Japan after FF16’s release is a testament to this. In a time when simultaneous multiplatform releases garner more attention and arguably more profit, exclusive releases may seem like a relic of a bygone era.
Then again, such a conclusion might feel like an overreaction as well – Square Enix seeing their profits and stock price go down isn’t as worrying in the eyes of an investor when several sure-fire hits are lined up over the next few years.
Unfortunately, this brings up the conversation about Square Enix foregoing innovation and experimentation over titles with proven track records. Outriders, while not the biggest money-maker for Square Enix, was a decent outing well-deserving of a sequel if it isn’t already in the works. And, while Forspoken and Babylon’s Fall were both underwhelming, Marvel’s Guardians of the Galaxy was well-loved among critics despite the lack of sales.
One can’t help but wonder if this is Square Enix’s way of placing all of its eggs in a single basket or a realization that its business scope has peaked.
At the end of the day, we’ll all just have to wait and see if Square Enix can find the right harmony between the Octopath Travellers and the Final Fantasys of the gaming world.
