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Technology

Square Enix Faces Shareholder Inquiry on Relationship with Sweet Baby Inc. at Recent Meeting

At a recent investor meeting, Square Enix faced direct questions from a shareholder about their relationship with the controversial video game diversity consultancy, Sweet Baby Inc.

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Square Enix

This inquiry was highlighted by @Michsuzu, a Japanese blogger and YouTuber known for analyzing entertainment data, including video game sales and the rise of VTubers. Michsuzu, who attended the meeting, reported that Square Enix president Takashi Kiryu was asked about various issues, such as the lack of updates on Dragon Quest XII, future sales targets, and measures to protect copyrighted works from AI generation tools. However, the question that stood out was about Square Enix’s connection to Sweet Baby Inc.

A shareholder asked, “I’m personally happy about the shift from quantity to quality. I hope good titles will come out in the future. I’m concerned about the Canadian consulting company ‘Sweet Baby Inc.’ Square Enix is listed as a client, but is there actually a transaction there? What kind of transaction is it? Will they continue to do so in the future?”

President Kiryu refrained from providing a direct answer. Instead, he emphasized the company’s focus on future content quality. “I would like to refrain from making specific comments about individual clients,” Kiryu said, according to Michsuzu. “As we shift from quantity to quality, providing content that is enjoyable and safe for our customers is also part of what makes a product fun. We will do our best as creators.”

The meeting concluded with the approval of three new corporate proposals and the introduction of new directors at Square Enix.

The term “safe” in Kiryu’s response likely refers to creating content that avoids offending sociopolitical sensibilities, a strategy that has been linked to DEI (Diversity, Equity, and Inclusion) initiatives promoted by consultancy firms like Sweet Baby Inc. Critics argue that DEI efforts often result in content that feels more like a social statement than entertainment, combined with poor writing and gameplay, as evidenced by games like Suicide Squad: Kill the Justice League.

Square Enix has been criticized for softening their content to appeal to Western audiences, leading to changes such as the censorship of Tifa Lockhart’s outfit in Final Fantasy VII Remake and Rebirth, the inclusion of non-binary gender options in Harvestella, and toned-down slavery-related dialogue in Final Fantasy XVI.

Despite these changes, there are indications that Square Enix might not be entirely committed to DEI initiatives. For instance, Final Fantasy VII Rebirth featured beachwear for Tifa and Aerith, complete with humorous reactions from male characters, suggesting a more traditional approach to game content. Additionally, in an April interview, Mana Series Producer Masaru Oyamada emphasized the importance of delivering games based on the developers’ creative vision.

In summary, Square Enix’s recent investor meeting brought their relationship with Sweet Baby Inc. into the spotlight, reflecting ongoing tensions between shareholder expectations and the company’s approach to DEI and content creation. As Square Enix continues to navigate these challenges, it remains to be seen how they will balance creative freedom with the demands of a diverse and evolving gaming audience.

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