Square Enix Disappointed by Final Fantasy XVI and Final Fantasy VII: Rebirth Sales

Square Enix has made a May 2024 financial results briefing public, confirming the public sentiment that Final Fantasy VII: Rebirth and Final Fantasy XVI had disappointing releases.

President Takashi Kiryu said the HD Games segment was operating at a loss of ¥8.1 billion (US$51.6 million at the time of the report) over FY2024/3, roughly twice as much as in the previous year.

Slow sales of Final Fantasy VII: Rebirth, Final Fantasy XVI, and Foamstars are the main culprits. The latter is going free-to-play in October.

One of the biggest enemies in accurately setting goals for Rebirth sales is its predecessor, Final Fantasy VII Remake.

The FF7 Remake came out in April 2020 for the PlayStation 4, a console that had sold 112.5 million units in July of that year.

March 2024 sales data for the PlayStation 5 records 54.2 million units, matching PS4 numbers at its 39th month mark.

Final Fantasy developer Naoki Yoshida has mentioned plans to diversify by pursuing Xbox releases following the Final Fantasy XIV port.

The global lockdowns also boosted Final Fantasy VII: Remake, with millions spending unprecedented time at home fighting Shinra.

With production limited to one console, and no pandemic, Rebirth reached the #2 spot in the PlayStation store, behind only Helldivers 2.

Not All Doom & Gloom For Square Enix

The report’s brightest spot was the massively multiplayer online entry Final Fantasy XIV. The MMO sub-segment recorded ¥19.3 billion in profits (approximately US$123 million at the time).

The successful release of the Final Fantasy XIV: Dawntrail expansion in July will be a bright spot in next year’s financial briefing.

The Final Fantasy XVI PC port came out yesterday and had 22 thousand concurrent players on day one.

The Windows version of Valisthea is still enjoying this honeymoon period, but the expectation is that this release will help the game gain traction.

Square Enix is famous for its high sales expectations for its games, so those who follow the company closely are not surprised by the May briefing.

The operating losses in the HD gaming segment remain a big deal when working with a household name like Final Fantasy, even if Final Fantasy XIV can cover costs for now.

Square Enix joined other gaming industry giants in layoffs earlier this year, but you cannot fire your workforce on mass and expect success in equal measure.

The third part of the Final Fantasy VII remake franchise should be released after 2027. Time will tell whether Square Enix’s future briefings will show lessons learned or further losses.