07 August 2023 13:38
Shares of Square Enix Holdings Co. experienced a significant intraday drop, the worst in nearly three years, leading to the erasure of more than a year's worth of gains. The drop was triggered by a reported 79% decline in operating profit. Square Enix President Takashi Kiryu explained that the latest installment of their long-running role-playing title did not meet the company's high-end sales expectations, as revealed during a post-earnings call with analysts.
Kiryu attributed part of the problem to the slow adoption of Sony Group Corp.'s PlayStation 5, which according to him acted as a limiting factor for sales. However, he noted that the situation has improved as hardware supply constraints have eased, and they plan to take measures to boost sales, expecting more people to use the PS5.
Tags: Square Enix
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