Square Enix (9684.T-JP: Tokyo) CEO and president Yosuke Matsuda is stepping down. He will be replaced by Takashi Kiryu, the former chief strategy officer. The change will be finalized at the Annual Shareholders’ Meeting in May.
Analysis
Matsuda had been a major proponent of NFT and blockchain games.  After a rough 2022 for the category, Matsuda reemphasized the company focus on NFTs in a New Year’s Letter from the President.
What is unclear is whether Square Enix will continue to pursue blockchain development. Kiryu has only been with the company since 2020 and is a relative unknown. Our hope is that the company increases it focus on core games for an international audience (what they call MMO and HD games)
Square Enix has been heavily involved in mobile games but has seen that business stagnate recently. In Western markets, the company is most known for its high-end RPG games, notably the Final Fantasy franchise. The company is a close partner with Sony and Final Fantasy XVI is one of the major PlayStation 5 exclusives for 2023.
Square Enix remains one of the initial stocks in the DFC Intelligence Video Game Stock Portfolio. The company generates 60% of its revenue in Japan, but we believe there is a substantial growth opportunity in international markets.
