Square Enix Has Lost Almost $2 Billion In Market Value Since Final Fantasy 16 Launched

It’s been a rough few months for Square Enix on the stock market. A new report says the Japanese video game maker has lost almost $2 billion in market value since the notable launch of Final Fantasy 16 in late June.

According to Bloomberg, Square Enix shares have nosedived because of weak Final Fantasy 16 sales in addition to the company reporting a considerable profit decline last month. For its part, Square Enix has previously fought back against the claims that Final Fantasy 16 has underperformed. In July, it said sales were “extremely strong” for the JRPG on PS5.

Investors and analysts are apparently not too sure about Square Enix’s future, though. Bloomberg talked with Tokyo-based game consultant Serkan Toto, who said the company “has problems with their games output.” He pointed out that Square Enix doesn’t have enough titles aiming for blockbuster status. Instead, they’re “kind of OK” and “very forgettable.”

UBS Securities analyst Kenji Fukuyama added that Square Enix hasn’t built another brand as big as Final Fantasy or Dragon Quest. So, if “we look five years ahead, there isn’t much that can make investors confident about the company’s future,” Fukuyama said.

One big game released this year from the company–outside those two storied series–was Forspoken for PS5 and PC. But Square Enix did admit Forspoken sales were “lackluster,” with “challenging” reviews.

Bloomberg reports that new Square Enix CEO Takashi Kiryu plans to shift the company’s priorities to big-budget games and away from smaller titles. Plus, Kiryu wants to get away from outsourcing development.

The next blockbuster game from Square Enix looks to be Final Fantasy 7 Rebirth, which is slated to launch in early 2024.

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