Square Enix Consolidation

Square Enix is placing a heavy focus on the consolidation of its business in 2023, according to a newsletter from president Yosuke Matsuda. The Japanese publisher has a busy year ahead, with a lot riding on the likes of Final Fantasy XVI, the continued evolution of Final Fantasy XIV, and maybe even Final Fantasy VII Rebirth — but behind the scenes, the company is committed to solidifying its structure.

You may remember that Square Enix sold off most of its Western studios to Embracer Group in 2022, alongside a bunch of properties like Tomb Raider and Deus Ex. Since then, the publisher's been working to increase its reliance on internal development — and that direction won't be changing.

In the "medium to long term", Square Enix "will accelerate our efforts to strengthen our internal development capabilities by further expanding our internal talent pool, while also more quickly concentrating our resources on the development of titles that are competitive globally." In other words, it wants to commit to its own projects while expanding its portfolio.

When you consider how many new games Square Enix released in 2022, this all makes sense. Indeed, the company also wants to refocus its publishing efforts, as Matsuda notes the importance of "end-to-end global publishing". Previously, the company's Japanese and Western publishing arms operated somewhat independently. Matsuda goes on to clarify that the goal is to become "One Square Enix".

But of course, evident consolidation can only mean one thing in this current gaming climate: Square Enix is preparing itself for a big sale. Or at least, that's what people on forums and social media would have you believe. Rumours of Sony snapping up Square Enix have been doing the rounds for ages now, and they've been fairly relentless. The whispers have started up again following this letter from Matsuda, as consolidation has long been equated to new management, and transforming a business into something that's more attractive to potential buyers.

We'll take more convincing, though. For as long as these rumours have been doing the rounds, there's been no concrete evidence to suggest that Square Enix wants to be bought. And with Microsoft's acquisition of Activison Blizzard still facing opposition from competition watchdogs, we can't imagine that Sony would make a similar move anytime soon.

In any case, it sounds like Square Enix is committed to its new direction. What do you think the future holds for the publisher? Make some predications in the comments section below.

[source hd.square-enix.com]