Square-Enix financials show steady incoming but slow sales on online gaming

If you’re worried about the overall health of Square-Enix, a glance at the company’s most recent financials should assuage any concerns, since the past financial year was quite good for the company. That’s with an extraordinary loss in the company’s yearly evaluation, even. But if you’re worried about the company’s health when it comes just to online games, that’s… also just fine, according to the same report. It’s not as good as it could be, but it’s fine.

The report states that ongoing revenue from the company’s online titles (Final Fantasy XI, Final Fantasy XIV, and Dragon Quest X in Japan) was steady and reliable, although actual sales and operating income were lower due to the lack of an expansion disk during the year. Considering that the point of comparison was the previous financial year and the release of Heavensward, this would fall under the “unsurprising” header. With Stormblood on the way later this year, it’s good for fans to see that the company continues to post solid results for its various online offerings.

Source: PR Newswire
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15 Comments on "Square-Enix financials show steady incoming but slow sales on online gaming"

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styopa
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styopa

I’d expect that any company able to reliably sell subscriptions to their games in 2017 *should* be financially healthy.

It’s only when they venture off trying to find someplace to use that pile of cash away from their core expertise that they start looking like like empty-pockets buffoons. (*cough* *cough* CCP *cough*)

Line
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Line

Their strategy is such a mess.
They want more “games as services” especially on mobile and PC, but the one good game following that model that they have is Hitman… which is getting the axe, and the studio is sent to the wolves.

While their big games are actually not episodic/DLC heavy at all.
It’s regular box games like FFXV and Tomb Raider. And the big titles to come in the next few years are the same.
Just… what?

Anyway, they make bank on terrible, terrible mobile games, most of the other non-FF games are not doing so well (not talking just about those results, their quarterly silence on virtually everything released is telling… that and the abysmal sales)… Square Enix really is the Japanese market in a nutshell. Struggle on everything, give up on everything, make a million mobile copy/pasted games, see what sticks.

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Jack Pipsam

Then they dick over Hitman.

ceder
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ceder

Yep. Just read that news which cant be a coincidence….

https://uk.news.yahoo.com/future-hitman-doubt-square-enix-080447621.html

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rafael12104

Interesting. I was not aware of this. And, I have to ask the question, even though this might be the wrong place to do it: How can Hitman, by all accounts a successful franchise with movies under its belt, be a commercial failure?

The whole thing seems rather strange to me and I get the feeling there is more going on than just a trimming of assets.

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BDJ

I really wish they would go all in on a Triple Triad game like hearthstone. Actually back it and follow through. They have loads of games that they could pull from. I’d play it in a heartbeat.

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rafael12104

Heh. Square is just fine, no surprise there. They just made a crap load off of FFXV, not as much as they wanted but still a crap load (I am making it an industry term). They banked and were pleasantly surprised by Nier:Automata, which sold very well here in NA/EU and includes substantial PC sales.

And let’s be honest, it is a juggernaut of a brand. It sells more than computer games. So their online offerings are just fine. Hec, they tried to pull away from XI and can’t. Lol.

All good from my perspective because they care about their brand.

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Danny Smith

Has Dragon Quest actually had an expansion yet?

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BalsBigBrother

Square Enix seems to be a company with reasonable expectations of their online presence and are happy enough to get a constant reliable income from it.

Line
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Line

For the most part, the games that we get in the West are just an afterthought (outside of FFXV).
They’re just chasing (and succeeding in many ways) the mobile/tablet market in Japan. The only thing that really makes money over here, and that shows in their priorities.

Obviously, that’s also the worst option for a global company, and it’s only pushing them more and more on a shrinking market rather than investing in the future.
I especially think about the Asian market which just receives games whenever (hi Nier Automata 2 months late) and suffers from the same PC sneer ever so common in SE.

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rafael12104

I also get the sense they are quite proud of their online presence, even though it is not their bread and butter.

ceder
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ceder

SE would do better if they didn’t do 20%+ region markup exploitation and other shenanigans.

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rocketskates69

For this fiscal year, the Company reported record-high net sales, operating income, ordinary income and profit attributable to owners of parent, respectively.

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rocketskates69

wait till stormblood and then check financials

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Armsbend

Of the older legacy developers (I think I might have made that up) SE is the worst in mobile gaming. The absolute worst.

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