Square Enix Focuses on In-House Development for 2023 Amidst Western Studio Sales

In a recent letter, Square Enix President Yosuke Matsuda outlined the company's plans to enhance its in-house development capabilities in 2023, despite the sale of several Western studios. Matsuda explained that the sale of Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal to Embracer in 2022 was part of a broader effort to concentrate resources, given the increasing complexity and cost of game development. The company aims to refocus its portfolio and accelerate internal development by expanding its talent pool and concentrating resources on globally competitive titles. Matsuda noted that this approach may seem contradictory to selling studios, but it is necessary to adapt to the changing environment. Additionally, Square Enix is shifting away from its geography-based publishing model, instead adopting a global publishing organization under the 'One Square Enix' concept, which launched last year with close cooperation between its chief publishing officers. The company also reaffirmed its commitment to the blockchain space, a topic Matsuda had previously discussed.