Square Enix announced in its latest financial report that net sales decreased by 18.4% year-on-year while operating revenues increased by 250.1% year-on-year compared to the same quarter (April 1 to June 30).
“HD games” have not performed well and are seeing declining sales, especially when compared to games released in the same period last year, including Final Fantasy 16 and Final Fantasy Pixel Remaster, two games that missed their sales targets at the time. The seemingly lackluster sales of Final Fantasy 7 Rebirth may also be weighing on these results.
Despite this, Square Enix’s AAA and AA games are profitable because development costs are now lower, as well as marketing costs have been reduced. The MMO segment is growing year after year thanks to the success of the Final Fantasy XIV expansions, while the mobile and browser game market is declining, with “various mobile games” that have not achieved the success hoped for, although Square Enix does not name any specific title.
The business related to manga, magazines and artbook publications records earnings growth of 15.8% while the segment related to merchandising loses 6.4%. Square Enix has recently reviewed its strategies, the publisher will now give priority to multiplatform games and will choose more carefully the projects to launch on the market, precisely with the aim of limiting financial risks to a minimum.
