Square Enix III: Strategy, allocation, valuation

The author analyzes Square Enix's new strategic plan, capital allocation, and valuation. The plan focuses on core competencies, multiplatform releases, and cost optimization, which is seen as a positive but unambitious move. The author values the non-game segments and cash pile, but finds the video game segment difficult to value due to its volatility. The author concludes that the stock is slightly undervalued with good optionality if the game segment improves, but not a clear bargain. The author holds a small position.