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Square Enix latest financial results — Net Sales: -8.4%; Operating Income: +22.1%

Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
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Here's the Square Enix latest financial results for the 6-month period which ended on September 30, 2024 (via Genki):

Net Sales: -8.4%
Operating income: +22.1%


  • HD Games net sales down due to decline in sales of new titles compared to last year which had FF16 & FF Pixel Remaster
  • HD Games sub-segment operating at a loss
  • MMO sub-segment sales and profits up due to FF14 Dawntrail
  • Games for Smart Devices/PC Browser sub segment sales and profits down
  • Publication Net Sales: +2.7%
  • Amusement Net Sales: +27.2%
  • Merchandising Net Sales: +13.7%
The Digital Entertainment segment consists of planning, development, distribution, and operation of digitalentertainment content primarily in the form of game. Digital entertainment content is offered to meetcustomer lifestyles across a variety of usage environments such as consumer game consoles (includinghandheld game machines), personal computers and smart devices.The HD (High-Definition) Game sub-segment’s net sales for the six-month period ended September 30, 2024declined compared to the same period of the previous fiscal year as new titles generated lower sales thanreleases such as “FINAL FANTASY XVI” and “FINAL FANTASY PIXEL REMASTER” had the previous year.However, sub-segment operating losses narrowed mainly due to lower development cost amortization andadvertising expenses compared with the same period of the previous year.In the MMO (Massively Multiplayer Online) Game sub-segment, net sales and profits rose compared with thesame period of the previous fiscal year on the launch of “FINAL FANTASY XIV: Dawntrail,” the latestexpansion pack for “FINAL FANTASY XIV.”In the Games for Smart Devices/PC Browser sub-segment, net sales and profits declined compared to thesame period of the previous fiscal year due in part to weakness in existing titles, as well as to the fact thatthe previous year had seen the recognition of royalty revenue.Net sales and operating income in the Digital Entertainment segment totaled ¥98,151 million (a decrease of19.6% from the same period of the prior fiscal year), and ¥16,834 million (an increase of 8.5% from thesame period of the prior fiscal year), respectively.

Full earnings can be found here - https://www.hd.square-enix.com/eng/news/pdf/25q2earnings.pdf
 

Hookshot

Member
A decline due to not releasing a big FF16 game but those games were also declining I think? So does anyone have a chart of the previous years? Is it just a downwards slope at this point?
 

StereoVsn

Gold Member
Probably why they are talking about less exclusives because they still had FFVII-2 this year but only on PS5.
Seriously, why the f is this game not on PC? They have had to lose a lot of sales on this fumble.

There is no reasonable explanation beyond incompetence whether in signing too long exclusivity contract with Sony or not having a decent technical team to do the port.
 

RoboFu

One of the green rats
Make the next FF in the style of FF6. Series umm what would you call it? A preboot?

Doesn't mean no 3d just same art direct and gameplay.
 

Three

Gold Member
Probably why they are talking about less exclusives because they still had FFVII-2 this year but only on PS5.
The 6 month period wouldn't include FFVII-2 release but follow on sales would be. "we were exclusive" is a poor excuse for declining sales in premium software and an increase in their GaaS games for this period though. They just had fewer sales in general compared to FF16 and FF Pixel Remasters for the same 6 month period last year which were ironically 'exclusives'.

If anything in terms of going multiplat they had this decline while bringing them to other platforms this year in the same period. They had both FF16 PC and FF pixel Remasters on xbox this year (though I think that was Oct?) which didn't make up for the sales against last years exclusives FF16 (PS5 only) and FF Pixel Remasters (PS, Switch).
 
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wvnative

Member
The 6 month period wouldn't include FFVII-2 release but follow on sales would be. "we were exclusive" is a poor excuse for declining sales in premium software and an increase in their GaaS games for this period though. They just had fewer sales in general compared to FF16 and FF Pixel Remasters for the same 6 month period last year which were ironically 'exclusives'.

If anything in terms of going multiplat they had this decline while bringing them to other platforms this year in the same period. They had both FF16 PC and FF pixel Remasters on xbox this year (though I think that was Oct?) which didn't make up for the sales against last years exclusives FF16 (PS5 only) and FF Pixel Remasters (PS, Switch).

We really won't know if multiplat would help them or not until they simultaneously launch a new game on multiple platforms day one.

I'm guessing the FF9 Remake will be their first attempt at this.
 
I really hope Final Fantasy IX Remake makes it big as a non exclusive title. It's my favorite FF game still and hope they keep the Jim Henson elements in the game.
 

Three

Gold Member
We really won't know if multiplat would help them or not until they simultaneously launch a new game on multiple platforms day one.

I'm guessing the FF9 Remake will be their first attempt at this.
Depends what you mean by help them. By selling more than April-September this year? Probably, but it would have done that anyway even if it were exclusive to Switch or PS. FF9 Remake would be a pretty big release like FF7-R or FF16 were. Would it sell more than FF16 or FF7 Remake, I'm not sure about that even let alone how it would help them overall financially. The HD games segment is operating at a loss due to development and advertising costs as they've stated. Their multiplat strategy wouldn't help them in those two areas since it would increase development cost and advertising spend too (from no joint marketing). It would likely increase sales but we would have to see how that offsets the increased cost too. Pc and the Asian market would no doubt help, xbox not so much.
 

BennyBlanco

aka IMurRIVAL69
Here’s hoping the PC port of Rebirth is sooner rather than later

It’s funny because Square used to use Nixxes for their ports, and they were really good ports like Tomb Raider. No idea who they use now, or if they do it internally. Or if their ports take so long because of Sony contracts.

GAwIby6XkAAX7FJ.jpg:large
 

Zathalus

Member
So day 1 across all platforms?
Well PC and PS5 at least. Switch 2 probably as well, but it depends on how powerful that is. Xbox FF sales have never really been great, especially now with Gamepass and a dwindling user base.
 

wvnative

Member
Depends what you mean by help them. By selling more than April-September this year? Probably, but it would have done that anyway even if it were exclusive to Switch or PS. FF9 Remake would be a pretty big release like FF7-R or FF16 were. Would it sell more than FF16 or FF7 Remake, I'm not sure about that even let alone how it would help them overall financially. The HD games segment is operating at a loss due to development and advertising costs as they've stated. Their multiplat strategy wouldn't help them in those two areas since it would increase development cost and advertising spend too (from no joint marketing). It would likely increase sales but we would have to see how that offsets the increased cost too. Pc and the Asian market would no doubt help, xbox not so much.

I just meant help them reach whatever total unit sales numbers they seem to be after.

I'm so annoyed by this discussion, because amidst all the complaining about underperforming games, we don't have actual numbers of what these games sold. Are they really underperforming? Or does Square continue to simply have delusional expectations?
 
The 6 month period wouldn't include FFVII-2 release but follow on sales would be. "we were exclusive" is a poor excuse for declining sales in premium software and an increase in their GaaS games for this period though. They just had fewer sales in general compared to FF16 and FF Pixel Remasters for the same 6 month period last year which were ironically 'exclusives'.

If anything in terms of going multiplat they had this decline while bringing them to other platforms this year in the same period. They had both FF16 PC and FF pixel Remasters on xbox this year (though I think that was Oct?) which didn't make up for the sales against last years exclusives FF16 (PS5 only) and FF Pixel Remasters (PS, Switch).

No you see exclusivity is only bad when PlayStation does it 😉😂

Although, even SIE seem to be thinking that way with how they are releasing games onto other platforms these days, so l guess that's that :/
 

GHound

Member
Pretty sure SE has released more exclusives on switch, PC, and mobile than on PS.
"The hell is a Triangle strategy? And why is this so called 'Bravely' you speak of the default anyway?" -Square when Sony asks about them. Probably. There's no way Sony even knows those exist. :messenger_smirking:
 

pulicat

Member
The 6 month period wouldn't include FFVII-2 release but follow on sales would be. "we were exclusive" is a poor excuse for declining sales in premium software and an increase in their GaaS games for this period though. They just had fewer sales in general compared to FF16 and FF Pixel Remasters for the same 6 month period last year which were ironically 'exclusives'.

If anything in terms of going multiplat they had this decline while bringing them to other platforms this year in the same period. They had both FF16 PC and FF pixel Remasters on xbox this year (though I think that was Oct?) which didn't make up for the sales against last years exclusives FF16 (PS5 only) and FF Pixel Remasters (PS, Switch).
1st half of last year Vs this year

Highlighted games
2023 - FFXVI and FF Pixel Remastered
2024 - Saga Beyond Emerald, KH steam collection, and Visions of mana. *SE didn't consider FFXVI pc as a major title.

Net sales
2023 - 43.6 billion yen
2024 - 27.5 billion yen

Operating loss
2023 - 3.6 billion yen
2024 - 1.2 billion yen

Square Enix statement for HD games result

"The HD (High-Definition) Game sub-segment’s net sales for the six-month period ended September 30, 2024 declined compared to the same period of the previous fiscal year as new titles generated lower sales thanreleases such as “FINAL FANTASY XVI” and “FINAL FANTASY PIXEL REMASTER” had the previous year. However, sub-segment operating losses narrowed mainly due to lower development cost amortization andadvertising expenses compared with the same period of the previous year."

They unable to recoup the huge cost of Final Fantasy XVI's budgets despite shipping 3 million copies of the game and delayed release of FF XVI gave negative effects to the sales on other platforms.
 

Astray

Member
They had a ton of multiplatform flops this go-round:

- Saga Emerald Beyond.
- Visions of Mana (this one was heavily promoted).
- Life is Strange: Double Exposure.

The only non-GAAS positive they had was releasing Kingdom Hearts on Steam.

Square has a massive pipeline problem, releasing a bad product on more platforms isn't the solution. The solution is releasing a good product that fits what the market wants to begin with.

It’s funny because Square used to use Nixxes for their ports, and they were really good ports like Tomb Raider. No idea who they use now, or if they do it internally. Or if their ports take so long because of Sony contracts.

GAwIby6XkAAX7FJ.jpg:large
Nixxes never worked on anything Japanese, so they wouldn't have had anything to do with FF Rebirth even if they were still independent.
 

pulicat

Member
Pretty sure SE has released more exclusives on switch, PC, and mobile than on PS.
Switch launch exclusives are mostly successful in comparison to PS5 launch exclusives because of modest budgets.

Nintendo Switch
AA budgets
Octopath Traveller
Project Triangle Strategy
Bravely Default 2
Live Alive

A budgets
Dragon Quest treasurers
Dragon Quest Dark Prince

Playstation 5
AAA
Final Fantasy XVI - failed to recoup development and marketing cost.
Final Fantasy VII Rebirth - failed to recoup development and marketing cost.
Foamstar - Flopped
 

Three

Gold Member
1st half of last year Vs this year

Highlighted games
2023 - FFXVI and FF Pixel Remastered
2024 - Saga Beyond Emerald, KH steam collection, and Visions of mana. *SE didn't consider FFXVI pc as a major title.

Net sales
2023 - 43.6 billion yen
2024 - 27.5 billion yen

Operating loss
2023 - 3.6 billion yen
2024 - 1.2 billion yen

Square Enix statement for HD games result

"The HD (High-Definition) Game sub-segment’s net sales for the six-month period ended September 30, 2024 declined compared to the same period of the previous fiscal year as new titles generated lower sales thanreleases such as “FINAL FANTASY XVI” and “FINAL FANTASY PIXEL REMASTER” had the previous year. However, sub-segment operating losses narrowed mainly due to lower development cost amortization andadvertising expenses compared with the same period of the previous year."

They unable to recoup the huge cost of Final Fantasy XVI's budgets despite shipping 3 million copies of the game and delayed release of FF XVI gave negative effects to the sales on other platforms.
Yeah look at the net sales drop though. This year with games releasing on other platforms they had a big net decrease regardless, with mana being multiplatform from the getgo, FF16 coming to PC, and Kingdom hearts coming to steam. The losses were also coming from development costs which would mean development cost would be increasing if they were to do that type of title on more platforms. Porting older games on other systems has much lower development cost hence why the operating loss is lower today than it was before. It's not due to increased net sales though. whether they recoup more due to "negative effects" is an uncertainty but I would hope they do.
 
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xenosys

Member
I have a feeling VII Rebirth will get a PC release date announcement over the next couple of months. TGAs would be a perfect time to announce that, especially when it'll be in the mix for a number of awards.

VII Remake had an initial 12 month exclusivity deal plus another 6 months was added when Intergrade was released. That meant we didn't get a PC release until December 2021 through EGS and then a Steam release in June 2022. Rebirth's was only 3 months, but I'm 99% sure Square Enix don't start working on their ports until the game releases on the platform that they've got the exclusive with, which is a pretty stupid strategy.

Rebirth should have really been ready to go as soon as the exclusivity period ended to capitalise on any lingering momentum the game had.

Just don't release it in February when the calendar is packed with huge games, and keep it off EGS and go directly to Steam.
 
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Ebrietas

Member
Switch launch exclusives are mostly successful in comparison to PS5 launch exclusives because of modest budgets.

Nintendo Switch
AA budgets
Octopath Traveller
Project Triangle Strategy
Bravely Default 2
Live Alive

A budgets
Dragon Quest treasurers
Dragon Quest Dark Prince

Playstation 5
AAA
Final Fantasy XVI - failed to recoup development and marketing cost.
Final Fantasy VII Rebirth - failed to recoup development and marketing cost.
Foamstar - Flopped
Irrelevant. They would have sold more and made even more money if they also released on PS. You know, expand the audience like people always demand them to do?
 

nial

Member
"The hell is a Triangle strategy? And why is this so called 'Bravely' you speak of the default anyway?" -Square when Sony asks about them. Probably. There's no way Sony even knows those exist. :messenger_smirking:
There was some speculation on Triangle Strategy getting ported. Would be cool.
 

Woopah

Member
We really won't know if multiplat would help them or not until they simultaneously launch a new game on multiple platforms day one.

I'm guessing the FF9 Remake will be their first attempt at this.
DQIIIHD is coming out on more platforms than previous DQ games, so I say that counts as an attempt.
 
Pretty sure SE has released more exclusives on switch, PC, and mobile than on PS.

You're right, but my point was that people seem to only think it's bad when they release exclusives for PlayStation.

And that sentiment usually comes from salty Xbox diehards who think Xbox is supposed to get every game PlayStation has, simply because it exists. That's why idiots like Jez were running around pushing SIE having a shady "anti-Xbox" exclusivity deal for Black Myth Wukong until everyone with common sense told him to shut up because he was wrong.

DQIIIHD is coming out on more platforms than previous DQ games, so I say that counts as an attempt.

AFAIK, the latest mainline DQ game is on PS, Switch, and Xbox. And might be on Steam, but I don't know for sure.

It wasn't Day 1 across the platforms though and, yeah, that is probably something which will change for XII.

I have a feeling VII Rebirth will get a PC release date announcement over the next couple of months. TGAs would be a perfect time to announce that, especially when it'll be in the mix for a number of awards.

VII Remake had an initial 12 month exclusivity deal plus another 6 months was added when Intergrade was released. That meant we didn't get a PC release until December 2021 through EGS and then a Steam release in June 2022. Rebirth's was only 3 months, but I'm 99% sure Square Enix don't start working on their ports until the game releases on the platform that they've got the exclusive with, which is a pretty stupid strategy.

Rebirth should have really been ready to go as soon as the exclusivity period ended to capitalise on any lingering momentum the game had.

Just don't release it in February when the calendar is packed with huge games, and keep it off EGS and go directly to Steam.

Why keep it off EGS? I thought we were trying to be more "pro-consumer" here, shouldn't EGS users have the option to play the game if they want vs. being forced to go through Steam?

I mean if the idea with folks and SE when it comes to a multiplat strategy is to make the games available to more people, there's no reason to exclude EGS or even GOG when it comes to a PC version. Epic aren't even doing timed exclusivity deals anymore so in theory it should be even more acceptable to some of these folks :/
 
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Caffeine

Gold Member
I mean if Square kinda just takes a look over at Sega releasing your games like yakuza and persona to everyone seems to be yielding more sales. this staggered release style square has been doing is hurting them and the upfront money isn't covering that anymore.
 
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pulicat

Member
No mention of visions of mana and its sales? It was multiplat was expecting them to cheer on how successful the new strategy is.
Multiplat but abandoned the platform where most of Mana audiences play the game on lol.

Dragon Quest 3 Remake is going to show us what a successful game looks like.
 

Ebrietas

Member
You're right, but my point was that people seem to only think it's bad when they release exclusives for PlayStation.

And that sentiment usually comes from salty Xbox diehards who think Xbox is supposed to get every game PlayStation has, simply because it exists. That's why idiots like Jez were running around pushing SIE having a shady "anti-Xbox" exclusivity deal for Black Myth Wukong until everyone with common sense told him to shut up because he was wrong.



AFAIK, the latest mainline DQ game is on PS, Switch, and Xbox. And might be on Steam, but I don't know for sure.

It wasn't Day 1 across the platforms though and, yeah, that is probably something which will change for XII.



Why keep it off EGS? I thought we were trying to be more "pro-consumer" here, shouldn't EGS users have the option to play the game if they want vs. being forced to go through Steam?

I mean if the idea with folks and SE when it comes to a multiplat strategy is to make the games available to more people, there's no reason to exclude EGS or even GOG when it comes to a PC version. Epic aren't even doing timed exclusivity deals anymore so in theory it should be even more acceptable to some of these folks :/
“Exclusives for me, not for thee” seems to be the guiding motto amongst PC and Xbox fanboys.
 
I mean if Square kinda just takes a look over at Sega releasing your games like yakuza and persona to everyone seems to be yielding more sales. this staggered release style square has been doing is hurting them and the upfront money isn't covering that anymore.

Those games doing well has more to do with than just being on more platform. FF has had brand identity whiplash for maybe the past decade, starting from XIII I'd say.

Which would be a bigger reason for see-sawing sales of various mainline installments considering there are plenty of exclusives selling much better than most multiplats out there.

No mention of visions of mana and its sales? It was multiplat was expecting them to cheer on how successful the new strategy is.

Funny how that game always gets left out, huh?

“Exclusives for me, not for thee” seems to be the guiding motto amongst PC and Xbox fanboys.

It always has been, and Phil Spencer & Western games media cronies helped fan the flames, especially the past two years.
 
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xenosys

Member
Why keep it off EGS? I thought we were trying to be more "pro-consumer" here, shouldn't EGS users have the option to play the game if they want vs. being forced to go through Steam?

I mean if the idea with folks and SE when it comes to a multiplat strategy is to make the games available to more people, there's no reason to exclude EGS or even GOG when it comes to a PC version. Epic aren't even doing timed exclusivity deals anymore so in theory it should be even more acceptable to some of these folks :/

I should have clarified, releasing the game on EGS is fine. Just don't release the game on there for 6 months as part of an exclusivity agreement (like SE did with VII Remake) and then release it on the more popular platform with the greater potential reach 6 months later when everyone's forgotten about it. It ws a terrible decision from SE.

If they want to simultaneously release it on EGS and Steam at the same time, fine, but don't make the same mistakes that they did with VII Remake. Take your PC audience seriously, not like an afterthought.
 
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Woopah

Member
thicc_girls_are_teh_best thicc_girls_are_teh_best

DQXI came out first in Japan in 2017 on PS4 and 3DS, but only the PS4 version came to the West and only a year later. It then took several more years for the game to come to Switch, PC and Xbox.

Since then we've had DQX Offline (Japan only), DQ Dai (no one wanted), and DQ Monsters 3 and DQ Treasure (launched as Switch exclusives).

DQIIIHD is the first promising title in the franchise to be released on all platforms and in all regions at the same time.
 
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I should have clarified, releasing the game on EGS is fine. Just don't release the game on there for 6 months as part of an exclusivity agreement (like SE did with VII Remake) and then release it on the more popular platform with the greater potential reach 6 months later when everyone's forgotten about it. It ws a terrible decision from SE.

If they want to simultaneously release it on EGS and Steam at the same time, fine, but don't make the same mistakes that they did with VII Remake. Take your PC audience seriously, not like an afterthought.

Well, it seems Epic won't be going for any launcher exclusivity this time or going forward, so timed exclusivity to EGS shouldn't be anything to worry about. Though I don't 100% agree that it hurts a game and makes it "miss a window" or anything like that. IMO such only happens if the port later coincides with a hot new release that's within the same genre/space and getting all of the attention, or the very rare mega-game release (i.e timing a port of VII Rebirth to Steam around same time GTA6 got its PC port).

Otherwise if a game is quality, it'll find its audience on multiple places even with staggers between platforms, as it's been that way in the past. Though maybe these days, don't make those staggers spaced out too much since there's a not-insignificant portion who are just in for hype releases regardless of what genre or sub-genre the game occupies. Those are the ones most at-risk of just skipping on the game if it comes to their platform later, but again it depends on exactly how much later and if it's when there is another similar new release or some massive mega-hit game that could just suck away attention.

Because there is also always the chance that a lot of those people simply buy the game where it is already available, at some point, depending on how long it takes to get a port.

As for the DQ stuff, yeah I guess IIIHD will be the first one with a clear multiplat Day 1 global launch. I think that's the kind of game where, especially in places like Japan, maybe not all platforms are even required considering where JRPGs are pulling in most of their sales and just how popular DQ is in those places. But it'll be interesting to see how lower-priority platforms contribute to sales totals with a Day 1 drop in regions where said platforms have more life in them.
 
Hmm, if FF16 and Rebirth both lost money... it almost kind of makes me wonder why they seemingly greenlit Part 3 so quickly. Even factoring in that they should be able to reuse a lot of the existing assets.
 

wvnative

Member
Hmm, if FF16 and Rebirth both lost money... it almost kind of makes me wonder why they seemingly greenlit Part 3 so quickly. Even factoring in that they should be able to reuse a lot of the existing assets.
Because the whole trilogy was greenlit in 2015, and cancelling it would result in a catastrophic reputation loss for square
 
Because the whole trilogy was greenlit in 2015, and cancelling it would result in a catastrophic reputation loss for square
Hmm, if FF16 and Rebirth both lost money... it almost kind of makes me wonder why they seemingly greenlit Part 3 so quickly. Even factoring in that they should be able to reuse a lot of the existing assets.
They both lost money? I heard the sales were lower than expectations. Where is the data that both games resulted in losses and made no money after expenses were incurred?

Agreed with nwnative, the game and the property is far too valuable to simply cancel it. Too many reasons to even mention, beyond the widespread fan disappointment. For starters, FF is their biggest brand. Canceling a FF game would be counter-productive just from that standpoint, alone. 🤷‍♂️
 
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