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Square Enix is looking to grow its presence outside the Japanese market

The massive publisher has credited the "graying demographics" of Japan for the new strategy.

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Square Enix, while being one of the largest game publishers in the world, generally has a focus on Japanese games and titles. For the last quarter of 2022 alone, the publisher has and is releasing The Diofield Chronicle, Valkyrie Elysium, Star Ocean: The Divine Force, Harvestella, Crisis Core: Final Fantasy VII - Reunion, and more.

But, it looks like it's starting to reposition this approach as the latest annual report states that Square Enix will be aiming to release and work on more projects for a more global audience.

"Achieving major growth in the game industry is difficult now for companies that compete primarily in the Japanese market, given its graying demographics," states the report.

"As such, it is critical for our business that we produce hit titles that speak to the global market, which offers greater scale in terms of both customers and sales volumes. Furthermore, game development efforts are becoming more sizable and sophisticated as the result of technological advancements in the devices on which they are played, such as consoles or smart devices. The investment required to develop game titles is therefore an order of magnitude greater than in the past. In other words, the Japanese market is no longer sufficient for achieving a level of earnings that enables us to recoup our development investment and generate a profit, and we therefore need to approach our development efforts based on the assumption that we have to succeed in the global market."

This of course all comes after Square Enix recently sold various studios known for their work in the "global market", with those developers being Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal.

Square Enix is looking to grow its presence outside the Japanese market

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