The stock price Of Square Enix And dropped by almost 16% after the company reported financial results for the fiscal year ended March 31, 2024.
Specifically, at the opening of the Tokyo Stock Exchange, Square Enix’s share price went from 6,268 yen (around 37.1 euros) to 5,268 yen (31.2 euros), with a drop of 15.95%.
As anticipated at the beginning, the drop in the price is caused by the company’s latest disappointing financial results, which have seen a substantial increase in costs due to the cancellation of several projects, lower than expected revenues, probably linked to the performance of Final Fantasy 7 Rebirth and Final Fantasy 16, resulting in a 70% year-over-year drop in net profits.
The forecasts for the current fiscal year (which ends in March 2025) are also not particularly attractive, with the company forecasting an operating income of 40 billion yen (about 236.76 million euros), against 57 billion of yen expected by analysts.
Square Enix’s new strategy
Square Enix’s latest financial report was accompanied by the announcement of a new strategywith the company intending to lay new solid foundations for the future between now and 2027.
To make this understood, embrace a multiplatform approach for triple-A games by aiming at the PlayStation, Xbox, Nintendo and PC ecosystems, therefore less focused on temporal exclusives such as those of the latest Final Fantasy, and concentrating attention on a smaller number of games and IPs, preferring quality over quantity. There are also plans to reorganize the company’s structure in the homeland and in the West, which unfortunately also led to layoffs in the European and US divisions.
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