Square-Enix strives to be diverse
As we reported recently, Square-Enix is looking for foreign publishers in the United States and European markets, in an effort generate a larger amount of revenue from foreign markets. As the Financial Times article reported, Square-Enix’s foreign sales accounts for no more than 20% of their revenue, Square-Enix is hoping to make it 50% in the next three years.
However, Square Enix President Yoichi Wada has since issued a statement seemingly contradicting this report, claiming that foreign sales already accounts for 50% of the company’s revenue. Instead, Wada has stated that the firm now wishes to increase this number to a high percentage.
“It is crucial for us to expand our businesses on a global basis," Wada said. "Given the fact that the size of overseas markets is now more than three times as large as the domestic market, we recognize numerous growth opportunities. Our strategy to seize such opportunities is two-fold; (1) strengthen our own distribution channels developed by our local subsidiaries in these geographic areas, and (2) diversify our content in accordance with user preferences in each area.”
“Through these strategic initiatives, our initial goal within a time frame of three to five years is to raise our foreign sales ratio for console/handheld games from its current 50 percent level to approximately 75 percent. We shall continue our effort to better serve overseas markets”, he continued.
Square-Enix has two strategies set out in order to achieve their goals. The first is to expand on the firm’s distribution channels throughout particular areas and create more presence. Finally, the second is to open up to new ideas and create a more diverse stable of games to suit each demographics particular region.
Indeed, the most pressing obstacle facing the company at this point is due to the fact western territories are not as favourable to RPGs as their Japanese counterparts. Therefore, with that being said, it is widely conjectured that the Square-Enix may be looking into creating games in genres they have never stepped foot in before such as survival horror, FPS, and even western style RPGs similar to Bethesda’s critically acclaimed 2006 hit; The Elder Scrolls IV: Oblivion.
The possibilities are limitless, but it is going to be interesting to see how this all pans out in the next three to five years. This is also not the first time such an idea has been considered by the company; before the merge between SquareSoft and Enix, Square Soft had a tie with Electronic Arts, which resulted in an all-new subsidiary called EA Square. This brand brought out titles such as Chrono Cross and Parasite Eve 2 to the North American markets.
Stay tuned for more information as it breaks.