Square Enix plans to divest from fully owned studios due to rising development costs

Square Enix has revealed that it will pursue approaches other than full studio ownership, according to Square Enix’s Q1 FY2023/3 financial results briefing session for investors.

President Yosuke Matsuda said that while the company’s traditional policy has been to own a studio, it is trying to diversify into “joint ventures, equity-method subsidiaries and minority stakes.” The reason is due to the increasing cost of game development in recent years, games that do not sell well come with increasing downside risks.