Square Enix has released its Annual Report for shareholders, describing the success of the company over the last financial year and their strategies going forwards. The report states that Square Enix is seeking to “produce hit titles that speak to the global market”, due to the Japanese market’s “graying demographics.”
The term “graying” refers to the ageing of a population, and is a rising issue in Japan. Just last week, the Japanese government revealed that citizens over 65 years old now make up approximately 45% of the Japanese population. Going even older, citizens over the age of 75 make up 15% of the population. These are all-time highs, as reported by Japan Times. Older populations are less likely to engage in modern gaming, which prompts Square Enix to shift its focus beyond domestic borders if they want to expand their audience.
It’s not just the ageing population of Japan that’s making Square Enix want to go bigger. The future business strategy is also attributed to the rising cost of gaming, with the report saying “game development efforts are becoming more sizable and sophisticated as the result of technological advancements […] the investment required to develop game titles is therefore an order of magnitude greater than in the past.” A larger audience results in larger sales, and in return Square Enix’s games can get bigger too.
The Annual Report does have some good news though, with Final Fantasy, Dragon Quest and Kingdom Hearts all getting new sales totals, which we break down in another article here. Finally, in news that may be concerning to some, the President of Square Enix also takes the opportunity to stress their growing interest in blockchain gaming, as reported here.
How do you feel about Square Enix and their new global focus? Let us know in the comments below, and keep your eyes on GameLuster for more gaming news.
