Square Enix Will Refocus On Global Market Success
Square Enix issues an annual report in which it emphasizes the importance of shifting its focus from success in Japan to success everywhere.
As the western gaming market grows, Square Enix has realized that it must now cater to the entire world, rather than just Japan, with its games. Square Enix has prioritized its home market as a Japanese company, with other markets coming second.
However, times have changed, and as Japan's demographics change, Square Enix recognizes the need to consider how to succeed everywhere. Square Enix released a financial report that discussed its future plans and how it intends to achieve them.
The report describes how Japan has a "graying demographic," referring to its aging population, and how, in combination with high production costs, it is necessary to create games that will be popular worldwide, not just in Japan. Games are expensive to make these days, and Square Enix notes that it is no longer possible to recoup production costs, let alone turn a profit if its games are only selling well in Japan.
The report also emphasizes games that have performed well for the company globally, detailing 36 million units sold in the Kingdom Hearts series, 173 million for Final Fantasy, and 85 million for Dragon Quest, which has been a massive hit in Japan since its inception but hasn't performed as well outside of the country as series like Final Fantasy.
Access to new video games is now more than ever a global, simultaneous phenomenon. Companies that used to take months, if not years, to release a title outside of Japan are now doing so concurrently, as seen with SEGA's Like a Dragon series. This requires significantly more effort, as developers must not only consider the global market when designing the game but also complete translation and dubbing efforts at the same time. It remains to be seen how this will affect the direction of Square Enix's future projects.
Source: Square Enix