Square Enix has spent the last half of 2022 divesting its overseas studios and IPs in order to consolidate and become "One Square Enix," and some think it seems a lot like it's gearing up for a sale. By selling and getting rid of its overseas studios, Square Enix reported in its earnings release that it was able to earn 9,455 million yen on the gain on sales of shares, or about $7.2 million.

Square Enix is a high-profile company that would be desirable to many businesses due to the eternal popularity of Final Fantasy. However, the games that made Square Enix the giant it is today were released decades ago. By Square's admission in its earnings release, the sales of its games year to year are currently on the decline, which has caused it to make up the difference by consolidating.

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That divestment came in May 2022, when Square sold Crystal Dynamics and Eidos Montreal, the studios behind Triple-A titles like Deus Ex and Tomb Raider. After the sale, fans started spreading rumors that Square Enix's sale to Sony was around the corner. But Square's president wrote in a new year's letter that in the "medium to long term," Square Enix "will accelerate our efforts to strengthen our internal development capabilities by further expanding our internal talent pool, while also more quickly concentrating our resources on the development of titles that are competitive globally." This doesn't sound like intent on selling the company. However, attaining the Final Fantasy franchise would be a prestigious draw for potential buyers if it was to sell.

Square Enix is committed to producing new titles that can compete globally, which sounds less like it plans to sell and more like it's downsizing in order to grow more later. The new HD2D games it's been producing such as Octopath Traveler have been performing well and will be a vertical it wants to expand going forward. Square Enix recently experienced a burst of subscribers to Final Fantasy XIV Online as well, a community it's likely to continue growing and another reason it may choose not to sell.

Square Enix will continue to consolidate and focus on improving internally and producing more IPs, as indicated in its report. Sony would undoubtedly gain prestige by buying it, but it's uncertain. It's also possible Square Enix has no plans to sell but wants to strengthen its business domestically. A lot of possibilities would open up if Square was owned by Sony, like a revitalization of classic franchises with new developers behind the wheel. However, Sony may not purchase Square Enix to avoid any confrontation with Nintendo.

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Source: Push Square