Square Enix feared Western studios "cannibalised" sales of Japanese games - Eurogamer.net

Square Enix has released its latest financial results, detailing a rise in MMO sales thanks to Final Fantasy 14 despite an overall decline.

The sale of Square Enix's western studios - notably Crystal Dynamics and Eidos - was "driven by concerns that the titles cannibalised sales of the rest of the group", with the company aiming to improve capital efficiency.

That sale was merely phase one, with a second phase intended to diversify studio capital structure - the rising cost of development means the publisher needs to be selective with resources, limiting expansion.

This will largely impact European and American studios, with resources allocated to Japanese games.

Square Enix (SE) – highlights from results conf call… strap on your boots, this is a doozy 1/10 #SquareEnix.

This also means Square Enix is looking to sell stakes in its studios to improve capital efficiency, particularly notable with the likes of Sony and Tencent expanding?

Since the sale of Square Enix's western studios, there's been much speculation as to whether it would be bought by another company, with many fans hoping Sony would drop the cash owing to the historical importance of Final Fantasy to PlayStation.

Will you support Eurogamer.

We want to make Eurogamer better, and that means better for our readers - not for algorithms.

Become a supporter of Eurogamer and you can view the site completely ad-free, as well as gaining exclusive access to articles, podcasts and conversations that will bring you closer to the team, the stories, and the games we all love.

Ed is Reporter at Eurogamer, with an interest in streaming, people and communities, and giving a voice to marginalised people!

Steam now officially supports Switch's Joy-Con controllers.

Premium only | Off Topic: the wide open space of Better Call Saul

And other lovely Eurogamer merch in our official store