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Square Enix shareholders received a rude awakening Monday as the video game company behind Final Fantasy and Kingdom Hearts saw a 10-point dip in the Japanese market. This equates to a market capitalization loss that measures in the hundreds of millions.
The drop came in the wake of a Square Enix financial report that actually offered some offered good news to investors. The company saw $136 million in profits over a six month period ending in September of 2024. This represents a year-on-year increase of 22%.
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Above is a selection from the article I felt needed a spotlight. Interesting read and let this be a lesson Square!Square Enix was a notable client of Kim Belair’s Sweet Baby Inc. This narrative design company contracts with gaming studios to consult on story elements, often injecting DEI into the narrative. The company appeared prominently on SBI’s website, though recently Square Enix vanished from the list entirely.
While there’s no definitive list of Sweet Baby Inc‘s influence on Square, many point to censorship actions taken by the company in recent years, like restricting the size of Tifa’s chest in Final Fantasy VII, as proof of the narrative firm’s involvement.
Sweet Baby Inc. wasn’t the only narrative design firm Square worked with. It also contracted Black Girl Gamers to work on noted flop Forspoken. Square Enix’s representative director Yosuke Matsuda even admitted that sales for Forspoken were weak back in February 2023.
This failure was so extreme that Square closed down Forspoken’s studio, Luminous Productions, in February 2023.
It seemed to many as though Square learned the old adage, “go woke, go broke” the hard way. It saw a 70% decrease in profits following its work with Sweet Baby Inc. and Black Girl Gamers. Soon after, Square announced plans to enhance productivity and shift its focus from quantity to quality, citing a commitment to creating “unforgettable experiences.”
Still though, major releases like Final Fantasy XVI and Final Fantasy VII Rebirth underperformed, leaving the studio in dire straits.
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