Square Enix is now open to "acquiring stakes in game developers and making side deals in order to co-finance and publish games." This comes at a time shortly after the company lost $200 million from their Marvel games.

Square Enix Lost an Estimated $200 Million from Both Marvel Games 'Avengers' and 'Guardians of Galaxy'

According to the story by Tweak Town, Square Enix just lost an estimated $200 million from the "Avengers" and "Guardians of Galaxy." After this, the Japanese games publisher is reportedly "afraid of risk" and is taking huge actions to combat this.

The measures that Square Enix could be taking would possibly include "selling off stakes of its developers." The Japanese game developer reportedly gave some interesting comments regarding the future in a recent Q&A that it had along with investors.

The Volatility and Risk was Highlighted After the Developer Experienced Two Significant Flops on Marvel Titles

Square Enix is reportedly popular for different franchises like Final Fantasy and its executives announced that the management is going to be open to the idea of taking a minority stake as well as forming joint ventures in order to reduce the massive volatility that is included when gaming development.

The volatility and risk were highlighted with the recent two flops of the developer as further explained in an article by Metro. These flops included both "Avengers" and "Guardians of the Galaxy," two Marvel games that did not just miss the expectations internally, but also resulted in an estimated $200 million loss.

Square Enix is Selling Its Entire Western Game Studios Branches and Franchises that Didn't Meet Expectations

The heavy loss resulted in Square Enix selling off its whole Western game studios branches. These include a $300 million sale of Crystal Dynamics, Embracer Group, and Eidos Montreal altogether.

The deal reportedly also includes franchises that were not able to meet the expectations of Square Enix including both "Deus Ex" and "Tomb Raider." Although Square Enix remains profitable and doing okay, the company is reportedly still getting ready to crank out new games.

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Square Enix Lost 37% in Q1 Revenues While Spending Reached a Record High at $792 Million in FY22

Square Enix reportedly lost 37% in Q1 revenues due to both the lower game sales and foreign exchange rates. The developer's spending, on the other hand, has increased to a record $792 million in FY22.

The game developer is spending a larger amount on game development compared to before and has doubled down on different franchises like "Final Fantasy 7" which has been getting a number of new game releases due to popular demand.

The communications of Square Enix seem quite different since the publisher is still trying to invest in major breakthrough technology within the gaming space. Yosuke Matsuda, the CEO of Square Enix, promised to invest in tech like AR, VR, XR, and now even the more speculative NFT market.

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Written by Urian B.