Square Enix Experiences a Major Drop in Market Valuation: Internal Power Imbalance in the Spotlight

Reports have previously indicated that Square Enix's latest series installment, Final Fantasy XVI, did not live up to company expectations. The anticipated sales successes of Forspoken and Marvel's Avengers also failed to pan out. Consequently, it may not be surprising that Square Enix's share price plummeted significantly over the past year, wiping nearly $2 billion off its market value.

Internal sources who have anonymously reached out to the media attribute many of these issues and failures to a disproportionate power distribution, with individual producers allegedly wielding too much influence. Both current and ex-employees of Square Enix support this viewpoint, highlighting an absence of team structure and adequate documentation. They also take issue with the management's objectives, which seem to shift unexpectedly.

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