In the latest financial report, Square Enix revealed a total revenue of 356,344 million yen, an increase of 3.8% from the previous year. However, net profit dropped significantly by 69.7% to 14,912 million yen compared to the previous year’s 47,594 million yen. Some key highlights include:
– Revenue from HD games saw a slight increase with titles like Final Fantasy XVI, Pixel Remaster, VII Rebirth, and Dragon Quest Monsters: The Dark Prince. However, development costs and marketing expenses soared, leading to the cancellation of numerous game projects costing over 20,000 million yen.
– The MMO game category experienced a decline in revenue and profit due to the absence of new expansions in the past year. Mobile game revenue and profit also decreased despite the release of titles like Final Fantasy VII Ever Crisis and Dragon Quest Champions.
Looking ahead to the fiscal year 2024, Square Enix aims to achieve a profit of 28,000 million yen by implementing a 3-year business plan, which includes:
1. Reducing the cost of game development, selling off studios and IPs in foreign markets.
2. Expanding multi-platform game releases.
3. Growing the MMO game business to contribute more to overall revenue.
4. Focusing on the expanding print media business.
5. Reviving the theme park business heavily impacted by the recent pandemic.
6. Expanding the merchandising business for existing games and brands.
The report does not provide a summary of individual game sales, leaving the success of titles like Final Fantasy VII Rebirth uncertain. However, the company’s total game sales reached 26.32 million units, with downloads accounting for 20.19 million units and physical copies for 6.13 million units.
TLDR: Square Enix’s latest financial report shows a rise in revenue but a significant drop in net profit. The company plans to focus on cost reduction, multi-platform releases, and expanding MMO and print media businesses in the coming years.
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