At some point, Square Enix has to realize that it's not just the games themselves that have problems. Sometimes, it's how they're made, marketed, and sold. But, for now, Square is up to its usual antics as it effectively throws Forspoken under the bus.
Forspoken had a rough demo period, which set the tone for an even worse launch. But, fans were hoping Forspoken did a lot better commercially. Apparently, this wasn't the case.
Square Enix's president and representative director, Yosuke Matsuda, praised Forspoken in the company's February financial results briefing, saying that it "received positive feedback on its action features" and the company will use this to improve the "development capabilities of other games in the future."
Unfortunately, Matsuda revealed the reviews Forspoken were "challenging" and the sales were "lackluster." It was described as a "considerable downside risk to our FY2023/3 earnings."
This statement explains why Square Enix is reabsorbing Luminous Productions back into the company in May.