Square Enix's market value has plummeted by nearly $2 billion since the release of Final Fantasy 16.

Square Enix has endured a challenging period in the stock market, with reports indicating a nearly $2 billion loss in market value since the high-profile launch of Final Fantasy 16 in late June. Bloomberg has highlighted that this decline in Square Enix's shares is attributed to lackluster sales of Final Fantasy 16, as well as the company's substantial profit decline in the previous month. It's noteworthy that Square Enix has refuted claims of Final Fantasy 16's underperformance, emphasizing "extremely strong" sales of the JRPG on the PS5 back in July.

Investors and analysts express uncertainty about Square Enix's future. According to Tokyo-based gaming consultant Serkan Toto, the company faces issues with its game lineup, lacking titles with blockbuster potential and often delivering forgettable experiences. UBS Securities analyst Kenji Fukuyama also noted Square Enix's struggle to create another franchise as influential as Final Fantasy or Dragon Quest, leading to doubts about the company's prospects in the coming five years.

Outside of these iconic series, Square Enix released Forspoken for PS5 and PC this year, which the company admitted had lackluster sales and challenging reviews. In response, new CEO Takashi Kiryu plans to shift the company's focus towards big-budget games and reduce outsourcing in development.

The next highly anticipated game from Square Enix is Final Fantasy 7 Rebirth, set to launch in early 2024.