Square Enix, the esteemed video game developer and publisher known for its iconic franchises such as Final Fantasy and Dragon Quest, is on the brink of a significant transformation. In a strategic move aimed at refining the quality of its video game titles and enhancing profit margins, the company is planning a major overhaul of its game development structure.
This news comes from a Bloomberg report which highlighted insights from Square Enix’s financial results call with analysts on February 5, where the company’s representative director and president, Takashi Kiryu, detailed the forthcoming changes.
Kiryu’s revelations during the call underscored a strategic pivot towards minimizing outsourced development in favor of bolstering in-house capabilities for large-scale game projects.
This shift is not merely structural but philosophical, aiming at a closer integration of development processes to ensure that Square Enix’s hallmark of quality is not only maintained but elevated. By consolidating game development within its own walls, Square Enix anticipates a significant uptick in both the quality of its game offerings and its operational profit margins.
A Zero-Base Review Approach
The approach, as described by Kiryu, involves a “zero-base review” of the company’s organizational structure. This entails a ground-up reevaluation of what structural and procedural elements are essential for realizing the company’s ambitious game development pipeline.
The initiative is geared towards identifying and adopting the best practices and configurations necessary to support the creation of high-caliber content. This comprehensive review signifies Square Enix’s commitment to adapting its strategies and workflows to better align with its long-term objectives and market demands.
Analysts in attendance during the financial call relayed that the new structural plan is slated for implementation in April. A notable aspect of this revamped structure is the introduction of a new system designed to evaluate the quality of games at earlier stages of development.
This preemptive quality assurance mechanism is expected to streamline the development process, reducing the time and resources spent on rectifying issues later in the production cycle. It represents a proactive stance on maintaining high standards, ensuring that projects align with Square Enix’s esteemed reputation from the outset.
Anticipated Announcements and Future Outlook
While Kiryu mentioned that specifics regarding the new development structure would be forthcoming in spring at the earliest, the announcement has already sparked anticipation and speculation among fans and industry observers alike. This reform marks a pivotal moment in Square Enix’s history, signaling a deep introspection into its operational ethos and a bold step towards future-proofing its legacy.