Xbox/Square Enix Relationship Rumored to Have Gone “Wrong,” Microsoft Implied to be at Fault

For much of its history, publisher Square Enix has had a cozy relationship with fellow Japanese companies Sony and Nintendo, but not so much with Xbox. In the 2010s that changed, with major Square Enix titles, including Final Fantasy, coming to Xbox. Well, it seems like things may have changed again – Final Fantasy XVI is a PS5 exclusive, but beyond that, a number of other games like Octopath Traveler II and the Final Fantasy Pixel Remasters are somewhat arbitrarily skipping Xbox. Does Square Enix have some sort of beef with Microsoft? Well, maybe.

According to Microsoft insider Jez Corden, he’s heard that there’s “something functionally wrong” with the relationship between Xbox and Square Enix. When pressed on Twitter about who should be blamed for this breakdown, Corden seemed to imply Microsoft was the culprit.

Not what I’ve heard. ????

— Jez (@JezCorden) April 6, 2023

For their part, Square Enix has been careful not to hint at any falling out with Microsoft. According to them, Final Fantasy XVI is PS5 exclusive because Sony co-developed the game, allowing them to complete the project more quickly, and games like Octopath Traveler II are skipping Xbox after “observing the sales of other titles” on the system. Here’s Square Enix on how closely they’re working with Sony to make Final Fantasy XVI…

“From our point of view, the technical support we receive from the hardware manufacturer is a big factor to signing [exclusivity] contracts. […] There was a [time period] where we were developing together with SIE engineers, who know the hardware thoroughly down to the core and we received generous support in optimization that we could not manage on our own and so on.”

Of course, an unspoken factor in all of this are the mounting rumors that Sony may be eyeing Square Enix for purchase (they’ve committed to spending at least $5 billion on acquisitions this year… around the current market value of the Final Fantasy maker). Of course, Sony possibly buying Square Enix (and everything else in this article) should be taken with a grain of salt, but it would make sense for the Microsoft-Squeenix relationship to get a bit chilly if the former thought the latter was soon going to be a Sony first party.

What do you think? Does it feel like something has gone wrong between Microsoft and Square Enix? Can the relationship be mended, or is Xbox destined to remain out in the cold?