Welp, that's that for anyone who was still dreaming of SIE buying Square-Enix. The latter clearly isn't interested, and considering the hyper-aggressive (I would say targeted) discourse on their PlayStation exclusives sales-wise, I can't necessarily blame Square-Enix here.
However, it's also of my mind that Square-Enix might be taking some wrong lessons here. They say they're going to focus on quality; the problem I'd say was not quality, but consistency. FF XVI is a quality game, but it made design decisions at great odds to what many may've been expecting from a mainline Final Fantasy title. Games like the recent Valkyrie title are quality, but were released with little advertising and bunched up with a ton of other Square-Enix releases in a short time period PLUS released during very busy seasons for bigger game titles.
From what I can understand, Square-Enix's idea of increasing "quality" is to cut out the AA games, but I think that's a mistake. Though, they would have less a need for AA games since they aren't a platform holder like SIE, who should be pursuing more AA titles to fill out the release schedule of exclusives for their own console. But I can talk about SIE another time.
For what this multiplatform shift will entail, well I'm guessing it's going to be a lot like SEGA/Atlus's. I'm 100% not expecting FF VII Remake Part 3 to be a PlayStation exclusive anymore, though I feel that's something arrived to in agreement by SIE and Square-Enix. Since that game probably won't arrive until 2027/2028, I can see the release platforms being PlayStation 5, PlayStation 6, PC (Steam & EGS), and Xbox apparently, since Square-Enix mentioned it in their report. Either they're assuming traditional-style Xbox consoles will continue/have another generation, or they are already aware of plans from MS to make Xbox a more PC-like device but still operate off Xbox OS with (likely) some sandboxed Windows translation layer to run approved Windows apps, and get native versions of Steam, EGS etc. on the devices.
Regardless, they're at least under the assumption of Xbox being a distinct enough platform still to warrant separate mention from PC, and if their direction is what it seems like, then PlayStation could have a much more formidable Xbox to deal with going forward (which would make their allowing MS to port some games to PS consoles even wilder on SIE's part). At least, in terms of what hardware is proposed, even if it costs more than a PlayStation console (the cost & volume of production would be two reasons to not expect it to challenge PlayStation in unit sales, most likely).
Even with the mention of Xbox support though, I don't expect any Game Pass deals here, when even SEGA/Atlus are scaling back on that. The bigger point of interest though is their focus on Nintendo. I've seen way too many people here and around other places keep saying Nintendo wouldn't be a target platform for AAA Square-Enix games, yet here we are. They're outright saying it will be. A lot of the defacto 3P Japanese AAA exclusives PlayStation may've been getting this gen (which ain't much), won't be happening going forward. The same can be said for defacto Western 3P "exclusives" between PlayStation and Xbox over the past gen. Even if they have to do cloud asset streaming as an option, Square-Enix are going to try making Switch 2 a launch platform for at least most of their AAA games now.
I imagine even right now, they're working on ports of FF VII Remake and Rebirth for the Switch 2 that'll probably release as some double-pack next year. Maybe not at launch, but close to it. I wouldn't be surprised if Nintendo are working with Square-Enix on some exclusive Nintendo-themed content bonuses, too. I think VII Remake and Rebirth will hit Switch 2 before they go to Xbox & PC, but those two platforms will probably get FF XVI at around the same time Switch 2 gets the VII ports. Kingdom Hearts IV will probably be a PS5/Xbox/Switch 2/PC Day 1 launch. FF IX remake, if it's still happening, will be the same.
Now what about SIE in all this? Well, I'll try and be nice and just say....they got complacent, took certain market conditions for granted, got overly aggressive and chased trends, are now seemingly chasing a market that's shrunk recently (PC gaming), and their internal 1P studios (most of them) have been affected by the GAAS chase and in some cases subsequent cancellation of those games. I personally think SIE are in a worst spot now than they were at the start of this generation and now they've potentially lost a 3P partner for adding content differentiation (exclusives) to their console offering, though SIE themselves seem less and less interested in doing that either.
There's still a chance SIE can get marketing rights for many of these games going forward, and there's still a chance they can strike some co-development/co-funding exclusivity deal if the rumors of them doing that with SEGA/Atlus and Bandai-Namco for AA revivals of games like Wipeout are true (though I have a lot of doubt those rumors are true). But I'll be honest: this is mostly hopium on my part. There's little reason to exhaustively speculate if they will or won't do it, and instead just wait until there's an official announcement. But PlayStation losing yet another JRPG exclusive is just chipping away at all the little things that once used to make the console special, and there likely is no replacement on the horizon from SIE themselves (even though there are many studios they could work with on such a replacement, and they have IP suiting it like Dark Cloud, White Knight Chronicles, Legend of Dragoon etc.).
This isn't really meant to be a SIE criticism though; at the end of the day Square-Enix have to look out for their own best interests and if they feel a more aggressive multiplatform strategy is the answer, then that's what it'll be. I hope they're successful with it. But I also hope they don't consider shelving ALL their AA-style games, and establish a consistent core theme and design language for mainline Final Fantasy titles, while taking the best parts of XVI, Rebirth, and classic games to mix them together. If they can do that, while having a more sensible release schedule in general, I think they should definitely excel.