Square Enix is a widespread media holding and video game company. With several studios under its belt, it is responsible for video games like Final Fantasy XVI and Forspoken. However, the wave of layoffs, which doesn’t seem to end, has also reached the video game company.
As per reports, the game company has alerted its staff in the United States and Europe today about incoming layoffs. Many people in the video game industry are reacting to the news report and expressing how it speaks for the ugly state of the industry.
Square Enix’s Announcement Is the Latest in a Seemingly Endless Series of Layoffs
Per VGC, the company’s employees were informed about incoming layoffs in an internal meeting by Takashi Kiryu, the company’s president. Alarmingly, there is no update on the number of people who will be ousted as part of the ‘restructuring‘ strategy, which is being implemented; it sounds incredibly similar to what Embracer Group announced after a massive deal went south for it.
If one heads to the company’s website, there seem to be recent uploads in the news section. One such upload can be found here, stating possible reasons why the layoffs happened and what the company is now going for:
On page 8, the management strategy’s third subpoint states the company’s aspirations.
The Group has begun optimizing costs at its European and American offices via structural reforms. It will also promote intra-Group collaboration in Japan and abroad and strengthen the functions of its London development site.
The video game fraternity also reacted to the news, expressing its exasperation:
Notice the precise usage of keywords like ‘optimizing costs‘ and ‘structural reforms,’ which usually indicate upcoming layoffs that can affect hundreds, if not thousands, depending on the scale at which they are implemented.
Square Enix’s Plans Are Presented in the Financial Results Document
Per the document linked above, Square Enix has plans to ensure its titles go multiplatform. For example, one of the plans states that the primary motivator for the company is diversifying its revenue streams.
For example, Page 9 of the financial results document states that the company wants to diversify its revenue streams by making its games available on other platforms. This might mean that the death of console exclusives might be closer than we imagine.
This is what is written in the document:
For HD titles, the Group will aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs. Especially, in regards to major franchises and AAA titles including catalog titles, it will build an environment where more customers can enjoy our titles.
While it is unclear which titles will be affected by layoffs and the company’s plans to fulfill its multiplatform aspirations, it seems inevitable that Square Enix is looking to employ a different approach. What do you think of the state of the industry? And Square Enix’s new multiplatform approach? Let us know in the comment section below!
