Square-Enix Financial Report Apr-Dec 07

Kazenone

Member
Here is a report of Square-Enix Financial standings from the past 9 months starting from April 2007. (No direct sales figures on specific products, just totals)

First off, the juicy stuff;

Code:
			GAMES	ONLINE	MOBILE	PUBL.*	AMUS.**	OTHER***	TOTAL
	NET SALES
	To Customers	34,541	9,495	4,974	8,514	50,406	6,362		114,293
	
	EXPENSES	25,788	4,792	3,962	5,759	49,662	4,197		96,384
	OPERATING INCOME							17,909

*Magazines, comics, game-related books
**All businesses of Taito Group such as Rental, Sales of Goods & Merch
***Character merch. et cetera

This is slightly less that in 2006 where income was 19,656 million Yen ($185m) compared to this years 17,909 million Yen ($168m).

They also gave out information about sales in all regions.

Code:
			JP	NA	EU	AS
	NET SALES	
	To Customers	100,481	8,621	4,693	497
	
	EXPENSES	88,656	7,136	4,312	975
	TOTAL		15,837	1,905	673	-470

They also mentioned that the US was biggest in NA and the UK was prominent in the EU. However, both North America and Europe made less than in 2007 than the previous year. In 2006, total income for NA was 5,509 million Yen ($51m) compared to 1,905 million Yen ($17m) this year. Total income for the EU was 817 million Yen ($8m/£4m) in 2006, this year it was 637 million Yen ($7m/£3m)

In another PR statement, Square-Enix announced it was acquiring 5,000,000 of its own shares through late Jan to June 2008. Total acquisition will be 15 billion yen ($141m).

If I can recall, last year SE were making a killing of Online games, but now that seems to have changed. Also interesting to see Mobile takings the lowest, considering how President Yoichi Wada called for a shift to Mobile development a couple years ago.
 
Wow JP sales are huge compared to US sales for Square. No wonder their games are so JP centric. With numbers like that, it's no wonder they are not very enthusiastic about developing for the xbox.
 
Does this make SE the only large publisher worldwide that did NOT have a record year in 2007?

EDIT: Maybe this is the problem --> NET SALES To Cusomsters

EDIT2: I'm bitter about the lack of save points in Project Slypheed. You have to play for hours to clear a stage and if you don't make it all the way you have to start all over again. Grrrrr!
 
What do they expect?
They barely released anything in NA last year.

And they were up against what, KH2 and FF12 from the previous year?
 
Kazenone said:
Also interesting to see Mobile takings the lowest, considering how President Yoichi Wada called for a shift to Mobile development a couple years ago.
Good to know. Stop kicking your overseas market in the nuts with Japan-only mobile games already.

dothesummoner.gif
 
PuppetMaster said:
Wow JP sales are huge compared to US sales for Square. No wonder their games are so JP centric. With numbers like that, it's no wonder they are not very enthusiastic about developing for the xbox.

This really comes as a surprise?

Japanese RPGs are more popular in Japan! Who knew?
 
hoos30 said:
EDIT2: I'm bitter about the lack of save points in Project Slypheed. You have to play for hours to clear a stage and if you don't make it all the way you have to start all over again. Grrrrr!
Hours? You must suck. Also, you don't have to start all over again -- IIRC you can retry from each sub-mission start.
 
Kazenone said:
Total income for the EU was 817 million Yen ($8m/£4m) in 2006, this year it was 637 million Yen ($7m/£3m)[/b]

I only ask because of the title, but where it's saying total income here it does mean total income for the entire year of 2007, and not just from April like the thread title suggests, right? If so I find it strange that they performed worse in Europe this year with the releases of Final Fantasy XII, Final Fantasy III, and Valkyrie Profile 2. The only notable titles I can remember from SE last year here in Europe was Dragon Quest VIII and Kingdom Hearts 2, the former which I didn't think do very well here (though I don't know).

Edit: I was looking at yen and the number looked a lot bigger to me. I guess a million-ish dollars isn't a huge gap, really.
 
DQ8 actually did better in Europe than North America iirc. Didn't it do like 1.2m continentally and like 500k in France alone or something?
 
batbeg said:
I only ask because of the title, but where it's saying total income here it does mean total income for the entire year of 2007, and not just from April like the thread title suggests, right? If so I find it strange that they performed worse in Europe this year with the releases of Final Fantasy XII, Final Fantasy III, and Valkyrie Profile 2. The only notable titles I can remember from SE last year here in Europe was Dragon Quest VIII and Kingdom Hearts 2, the former which I didn't think do very well here (though I don't know).

Edit: I was looking at yen and the number looked a lot bigger to me. I guess a million-ish dollars isn't a huge gap, really.

Well it won't count initial sales of Final Fantasy XII since that was released in February but total income only means from the months between April and December 2007. I don't know SE's fiscal year (31st March to 30 March?) but I would assume if they release their financial standings for the fiscal year, the figures would be higher.
 
Ah, see, that's why I was wondering. It seemed odd in the year of a mainline FF that the sales would go down.

And jarrod, I was just speaking from anecdotal evidence here in the UK. The shops around here marked down DQVIII from full price down to about £20 in about a month which I thought was pretty quick. As I said... it might have done well for all I know :)
 
batbeg said:
.And jarrod, I was just speaking from anecdotal evidence here in the UK. The shops around here marked down DQVIII from full price down to about £20 in about a month which I thought was pretty quick. As I said... it might have done well for all I know :)
A month? Eh, I do not think so. I got VIII after I rebought a PS2 for full price and that was about a couple of months after release.
 
Durante said:
Hours? You must suck. Also, you don't have to start all over again -- IIRC you can retry from each sub-mission start.

Yes, I do suck at it. I just started playing last week.

It doesn't help that you can kill 99% of the enemy fleet, but the game will suddenly inject 3 fighters all the way across the map just seconds before the phony "In three minutes we won't be able to continue" timer expires.

And yes, you can retry the sub-missions but if you don't finish the last one before you have to shut the game off (for sleep maybe), then you have to start all over.

I haven't experienced such controller throwing rage since the days of Ninja Gaiden and that's a problem because my TV is a lot bigger than the one I used to have. :D
 
Magicpaint said:
A month? Eh, I do not think so. I got VIII after I rebought a PS2 for full price and that was about a couple of months after release.

I got DQVIII as a late birthday present at the end of April from my girlfriend - she was annoyed because a week later it was £20 in the nearby shops. No joke. I even only got £12 from Gamestation when I traded it in a few weeks after that.
 
batbeg said:
I got DQVIII as a late birthday present at the end of April from my girlfriend - she was annoyed because a week later it was £20 in the nearby shops. No joke. I even only got £12 from Gamestation when I traded it in a few weeks after that.
Well sometimes stores do early discounts, but they tend to be temporary. CoD4 was going for £30 @ Gamestation just a month after release, so it could be down to that. Or maybe it did get to the Platinum range that way. Iunno.

I know it did better outside UK, though.
 
Disparity between Net Sales in Japan compared to other regions is a little misleading because only the first two categories of products really apply outside Japan (unless S-E owns amusment centres in North America that I never heard of).

So basically 44, 000 (games + online) JP vs 8,600 NA.

Sounds about right when you consider that the closest thing we got to a big release in North America this year were games like Final Fantasy Tactics (PSP) and FFXII:RW.

Japan on the other hand saw the release of Crisis Core, DQIV:Remake, FFIV:Remake, DQ:Swords, plus the same North American titles that I mentioned above.

I wonder what the difference between Japan and North America are on years where both see significant releases.
 
kswiston said:
Disparity between Net Sales in Japan compared to other regions is a little misleading because only the first two categories of products really apply outside Japan (unless S-E owns amusment centres in North America that I never heard of).

So basically 44, 000 (games + online) JP vs 8,600 NA.

Sounds about right when you consider that the closest thing we got to a big release in North America this year were games like Final Fantasy Tactics (PSP) and FFXII:RW.

Japan on the other hand saw the release of Crisis Core, DQIV:Remake, FFIV:Remake, DQ:Swords, plus the same North American titles that I mentioned above.

I wonder what the difference between Japan and North America are on years where both see significant releases.

You are quite right, we will be able to see a general idea in August when SE release their mid-year report or if we get a fiscal report in March (I think).
 
jett said:
FFXIII/Vs is bleeding Squeenix confirmed?
Well, that's obvious. The games haven't been released, yet, so it's nothing but expenses, so far.

The Japan:(rest of the world) earnings ratio is amazing, and telling at the same time. It's like I said before, while talking about Blue Dragon. For niche genres, demographics seems to be more important than just installed base. It'll be interesting to see the effect FFXIII and Vs has on PS3 sales in Japan, when they launch.
 
Am I Reading this wrong or are Taito making more money than the entire S-E games division even when combined with mobiles?

If so then Woah! (And FF13 is pretty much to blame)
 
Nuclear Muffin said:
Am I Reading this wrong or are Taito making more money than the entire S-E games division even when combined with mobiles?

If so then Woah! (And FF13 is pretty much to blame)

I'm pretty sure business associated with Taito also includes arcade centres and things like that. Their net sales look high compared to the rest of S-E gaming divisions, but look at their expenses. Operating income associated with Taito was less than 750 million yen. Only 1.5% on that giant net income was actually profit.

Now compare that to the 14.5 billion yen S-E made from their other gaming divisions (including online sales and mobile phone sales). Even though Taito's net sales were a little higher than the rest of S-E's gaming divisions combined, the other divisions made almost 20 times more profit for the company.

Even with FFXIII development expenses, the gaming division was very profitable. S-E should really be thanking the DS (and to a smaller extent, the PSP).
 
Kusagari said:
Square released jack shit in the US this year. No surprise.

When I looked through their NA releases for 2007, I was surprised how many games they actually ended up releasing. The problem lies in the fact that most of them were things like Chocobo Tales (not a bad game but one that sold horribly I'm sure) and Children of Mana. I doubt they were expecting much from North America when their big Q4 2007 releases consisted of two DS spin-off titles and a PSP remake.
 
dionysus said:
Hopefully their mobile division will make a loss in 2008 and they will kill off the whole division.
If Microsoft had the same attitude...

Seriously, though, mobile phones are HUGE in Japan, which is obviously SE's most profitable audience. It has a gigantic installed base and low development costs. As much as I hate the fact, mobile phone gaming is only increasing in popularity. As if battery life wasn't already an issue, now I have to balance the possibility of needing to call 911 with playing 15 more minutes of FFVIIr:Mobile.

But I get that your post was mostly wishful(for all of us) thinking.
 
Top Bottom