Square Enix Lost $2 Billion As Its Stock Value Plummets To Its Lowest Point This Year
It’s been a rough week for Square Enix financially as the Final Fantasy studio saw its stock value drop a whopping $2 billion and its stock prices plummet by 28%, its lowest point this year. As a result, several analysts have reduced their price target for the company, which in turn has caused investors to rethink their investments, one of which has decided to reduce his holdings within the company.
The dip in stock prices is being attributed to several factors such as poor sales from Final Fantasy XVI and Forsaken, as well as the shuttering of several high-profile titles including Marvel Avengers, Babylon’s Fall, and mobile titles Final Fantasy VII: The First Soldier and Just Cause Mobile.
The failed releases are being blamed on poor project management which employees describe as “a single producer’s fiefdom”, ad hoc processes with goals that can shift at any time, and the lack of a team structure and proper documentation.
The studio has also apparently leaned too much on the performance of Final Fantasy XIV which has saved the company financially on more than one occasion. However, with the next FFXIV expansion still months away, Square Enix has been left without a cookie jar to save them until next summer.
