Square Enix's Financial Woes Deepen with Final Fantasy 16 Release

Square Enix has lost nearly $2 billion in value since the launch of Final Fantasy 16, with its shares declining by 28% since June. The underperformance of Final Fantasy 16, along with other AAA titles like Marvel's The Avengers and Forspoken, has led to a 66% drop in profit and analysts cutting their price target for the publisher. Sumitomo Mitsui Trust Asset Management, a long-term investor, has also reduced its holdings in Square Enix. The company's struggles are attributed to problems with game development structure, lack of team organization, and poor game quality control. Square Enix is undergoing changes in leadership and reorganizing its internal development teams.