Surprising Fortnite-esque Success: Final Fantasy 16 Shatters Gaming Records
Despite Final Fantasy 16 achieving impressive sales figures in the millions, Square Enix's President Takashi Kiryu expresses disappointment as they fell short of their ambitious high-end expectations
Highlights
Final Fantasy 16 sold over 3 million units in its first week, exceeding most game sales, but wasn't as profitable as expected due to high development costs.
Square Enix cited the PlayStation 5's limited player base as having negatively affected sales, but alluded to a potential increase in support for Xbox platforms going forward. Consequently, the company's stock price in Japan declined amid decreased profits, prompting the implementation of changes such as heightened emphasis on AAA releases and reduced investment in mid-sized games.
President Takashi Kiryu has revealed that Final Fantasy 16 did not meet Square Enix's high-end sales expectations. However, it is important to note that the game still sold well. Kiryu's statement was an honest assessment of the complex financial situation at Square Enix, as reported in their recent earnings report. This has sparked a discussion about the costs involved in developing major games like Final Fantasy and what is best for the future of developers.
Final Fantasy 16 was released on June 22, and it is still relatively early to gauge its long-term success. Nonetheless, it is worth mentioning that the game sold over 3 million units in its first week, according to Square Enix. This impressive figure surpasses the lifetime sales of many games, but it is important to remember that Final Fantasy releases are not ordinary games.
In the latest Square Enix earnings report, Takashi Kiryu had to provide an explanation for the company's significant drop in operating profit by 79%, with it decreasing from ¥14.4 billion to a mere ¥3.0 billion. The reason behind this drop lies in Square Enix expensing the entire development cost of Final Fantasy 16 during its initial financial quarter. While all future sales are expected to turn into profits, there existed a hopeful anticipation for higher profits at present from a financial standpoint. These optimistic expectations were partly based on the fact that the sales didn't meet the company's highest projections.
Square Enix still considers the sales of Final Fantasy 16 to be reasonable, despite a few factors that might have limited its success. The primary reason is believed to be the relatively small player base of the PlayStation 5, although those who do have the console showed a high attach rate. Recently, Square Enix hinted at providing increased support for Xbox platforms.
Given the circumstances, it is challenging to draw any definitive conclusions. Final Fantasy 16 has undoubtedly achieved success, but its production costs were substantial, and it remains exclusive to a console that has yet to reach its full potential in terms of player base. If the PlayStation 5 had a comparable number of players to the Nintendo Switch, if the game had been released simultaneously on PC, or if there had been a version for the PlayStation 4, sales may have far exceeded expectations.
Square Enix's stock price plummeted in Japan due to disappointing profits from Final Fantasy 16 sales. In response, Square Enix has pledged to make alterations in their future strategies, focusing less on mid-sized games and placing more emphasis on AAA releases. The implication for the future of Final Fantasy and other Square Enix projects remains uncertain. Currently, Final Fantasy 16 is accessible on PS5.
Source: Eurogamer
