The core development team of Final Fantasy 16, specifically, Creative Business Unit III, appears to have moved on from the project, with no plans for a direct sequel or spin-off. This information came from Naoki Yoshida, the game's producer, during an interview with Famitsu.
Yoshida, often referred to as "Yoshi-P," explained aside from the DLC team, FF16's developers have gone their separate ways, possibly working on different projects across Square Enix. This reflects the team's desire to explore new horizons rather than expanding upon FF16 indefinitely, which, they are already doing with Final Fantasy XIV anyway.
Yoshida expressed that the team gained considerable knowledge and expertise while crafting the world of Valisthea in FF16. However, the team members are now keen to channel this experience into either the next title in the series or an entirely new challenge. This statement reflects a common trend in the Final Fantasy franchise, where sequels are rare, and each installment typically explores a unique universe and narrative and, in many cases in recent years, experiments with a different kind of gameplay. The most notable exceptions to this established pattern are Final Fantasy VII, which spawned multiple spin-offs and a movie, among others, alongside its ongoing remake trilogy, Final Fantasy XIII and Final Fantasy XV.
For what it's worth, the world of Final Fantasy 16 is expanding for at least the next two years. The recently released DLC, Echoes of the Fallen, adds a handful of hours' worth of gameplay to the base game, introducing new story elements, battles, weapons, and an increased level cap, to help enrich the gameplay experience. The forthcoming DLC, The Rising Tide, scheduled for release in the following year, will feature Clive in a showdown with the Leviathan. Beyond this DLC, the core team is expected to embark on a new journey, potentially working on another mainline Final Fantasy title or a completely different project.
