During its latest financial briefing, Square Enix reportedly informed analysts in a conference call that it is undergoing a drastic review of its development system to improve its products' quality and increase revenue.
This news comes via Bloomberg, which reports that Square Enix's President, Takashi Kiryu, has outlined a policy that effectively reduces outsourced development while increasing internal development on large-scale titles. This lines up with Kiryu's comment from a previous financials Q&A on the company slimming down its overall software output in the future.
A further announcement on what Square Enix's structure will look like following the review will be made this Spring. While the translation may not be exact, Kiryu stated:
"We are reviewing from scratch what the organizational structure is to embody the contents of the pipeline, and what is best. The new structure will be launched in the spring. I would like to make an announcement about this."
According to attendees, Square Enix will be looking to implement the new structure in April, which will include a new check mechanism to evaluate game development and quality at earlier stages.
The announcement comes after the company confirmed that net sales from its digital entertainment sector totalled ¥179,654 million (a decrease of 2.6% from the same period of the prior fiscal year) while operating income totalled ¥30,715 million (a decrease of 20.7% from the same period of the prior fiscal year). This has been attributed to a decrease in sales of MMOs and mobile games along with increased development and advertising costs.