{"id":127018,"date":"2022-08-05T11:45:00","date_gmt":"2022-08-05T11:45:00","guid":{"rendered":"https:\/\/www.nintendolife.com\/#article-135549"},"modified":"2022-08-05T11:45:00","modified_gmt":"2022-08-05T11:45:00","slug":"square-enix-is-potentially-looking-to-sell-stakes-in-its-studios","status":"publish","type":"post","link":"https:\/\/sickgaming.net\/blog\/2022\/08\/05\/square-enix-is-potentially-looking-to-sell-stakes-in-its-studios\/","title":{"rendered":"Square Enix Is Potentially Looking To Sell Stakes In Its Studios"},"content":{"rendered":"
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Image: Square Enix<\/a><\/em><\/figcaption><\/figure>\n

Square Enix has been a mainstay in the industry for years, but it looks like the Japanese publisher and developer is struggling, having reported declining financial results for Q1 2023 (besides the huge success of its MMORPG, Final Fantasy XIV<\/a>). And, following the publication of those results, Eurogamer<\/a> reports that the company is looking to “improve capital efficiency” by selling stakes in its studios.<\/p>\n

This comes from an internal conference call held after the results were shared, with MST Financial analyst David Gibson<\/a> breaking down the discussion on Twitter.<\/p>\n

Square Enix recently sold a number of its Western studios to Embracer Group, but that was only phase one of the company’s plans. The next stage is for Square Enix to diversify the studio’s capital structure, and be more selective with resources due to rising costs.<\/p>\n

Resources will be focused on Japanese-developed games, with European and American studios impacted the most.<\/p>\n

One way Square Enix thinks it will improve its capital efficiency and offset rising costs is by selling stakes in some of its studios. Gibson suspects that the likes of Sony, Tencent, and Nexon would be among the interested parties. What this means is that Square Enix won’t entirely sell studios, but rather a percentage of them,<\/p>\n