Square Enix Alters Strategy As New Gaming Franchises Fail

Time and again, Square Enix returns to its classic franchises whenever it announces new titles - which was definitely the case with the company's line-up for this year's E3 2006, not to mention their kick ass revelation of the next Final Fantasy universe, called Fabula Nova Crystallis - Final Fantasy XIII during the show. But successfull as they may be, series like Final Fantasy and Dragon Quest seem to be the only thing the Japanese giant is capable of harnessing when it comes to gaming, something they're not really satisfied with.

As reported by Gamasutra, Square Enix president Yoichi Wada complains that the company failed to create any significant new franchises outside its core Final Fantasy and Dragon Quest series, despite attempts to diversify at the beginning of the previous generation of consoles with titles such as beat 'em-up The Bouncer and racing game Driving Emotion Type-S.

"We haven't come up with hit software to follow in the footsteps of Final Fantasy and other major titles, so we will have to alter our strategy", Yada said. "It's getting hard to maintain a flow of new game titles. We need a more comprehensive software business to develop synergies."

And they're full of synergies alright, as several actions recently undertaken by Square Enix clearly indicate: the recent acquisition of Taito's arcade and mobile business; the formation of a new media company with digital content solutions provider Faith; the creation of a serious games subsidiary with book publisher Gakken; the creation of Pokemon related mobile phone applications for Nintendo; or a recent partnership with Matsushita to create GUI and networking solutions for the electronics manufacturer's entertainment products - these are all signs of the company's desperate expansion outside the field of gaming. But at the same time, they're also omens of Square's decreasing enthusiasm for creating new games franchises, and instead focusing on their classic titles, buffing them up with multiple titles and formats - as is the case with Final Fantasy VII, and soon enough Final Fantasy XIII. Which isn't necessarily a bad thing... I guess.

(N.B. Archive text, links removed)