During its latest shareholder meeting, Square Enix revealed revenues down 27%, further demonstrating that the company is not experiencing its best financial times.
Despite its efforts to produce completely original titles and remakes, Square Enix is struggling to gain traction with the gaming community like it once did. According to Mark Kern, a former Blizzard employee who worked on World of Warcraft, Diablo 2, and Starcraft, a big part of the reason for this decline stems from the company’s decision to open an ethics department.
Kern claims the troubles for Square Enix began when it announced the ethics department, which has been involved in censoring aspects of the publisher’s games. This move has sparked discontent among players. He also points out that other Japanese video game companies are now embracing DEI policies, warning that these changes risk ruining them.
One example of censorship in Square Enix games was Final Fantasy 7 Rebirth, where Tifa’s outfit was altered in a patch. The company also previously partnered with Sweet Baby Inc., a consulting firm focused on inclusion, diversity, and equity in video games. However, in September, Sweet Baby Inc.’s name was removed from Square Enix’s partner list, suggesting the partnership has ended.
To improve its financial situation, Square Enix appears to be shifting towards multiplatform play, moving away from years of exclusive agreements with Sony, Nintendo, and other major players in the video game industry.
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