Square Enix's Stock Plummets as Final Fantasy 16 Fails to Meet Expectations

Square Enix's share price in Japan dropped by nearly 15% after the company's Q2 2023 earnings release, which revealed a 65% drop in profits despite a 14% increase in revenue. The underwhelming financials were attributed to the launch of Final Fantasy 16, with the game's initial sales reportedly not meeting the company's high expectations. President Takashi Kiryu also cited the slow adoption of the PS5 as a limiting factor, but expressed optimism that the end of hardware shortages would boost software sales. Final Fantasy 16 shipped and digitally sold three million copies within a week of its release, comparable to the launch sales of Final Fantasy 7 Remake.