Square Enix Financial Report: FF14 rocks! That’s why Tomb Raider had to go
Those responsible at Square Enix recently published the new financial report for the last fiscal quarter. Apparently the Japanese are only satisfied with the results of the MMO area, thanks to Final Fantasy 14. There were also details on the sale of Crystal Dynamics and Eidos and an outlook on the future.
Just a few days ago we reported that those responsible at Square Enix after the Sale of Crystal Dynamics, Square Enix Montreal and Eidos Montreal to Embracer Group spicy were criticized by Stephane D’Astous, former head of Eidos Montreal. One point of criticism: Western studios are said to have received less support from Japan than domestic projects, while Square Enix was constantly (and sometimes even publicly) criticizing them.
What does Square Enix say about the split?
When the deal was announced in May 2022, it said in a Square Enix press release, that’s how you want to adapt to the changes in the global games industry. The future does not lie in the classic development and sale of PC and console games, but in areas such as artificial intelligence, mobile, blockchain and metaverse. The proceeds from the sale will be used to make further investments here.
Apparently those responsible at Square Enix struck a slightly different tone at the conference call for the recently Financial report for the last fiscal quarter on. Noisy Financial analyst David Gibson the following statements were made during the call:
- The sale of Crystal Dynamics/Eidos (CD/E) was justified by concerns that the stocks could cannibalize sales from the rest of the group, with the deal being aimed at improving capital efficiency.
- The deal was just the first of two phases to diversify the studio’s capital structure.
- In the second phase, the Square Enix studios should select their projects more specifically and use their resources more concentrated. In this way you want to counteract the constantly increasing development costs.
- It is also part of phase 2 that Square Enix wants to carry out an evaluation of its own portfolio. Possibly one will separate from further studios. Others could be expanded.
- The remaining teams from EU and US are to support the development of the Japanese games in the future.
- There could also be targeted stock sales to improve your own chapter efficiency, if necessary.
What else does the financial report reveal?
Compared to the same quarter of the previous year, Square had to accept a sharp drop in sales (from 34.1 billion yen to 25.1 billion yen), especially in the area of ”HD games” (full-price games for PC and console). As a result, the overall result was also lower, although there was slight growth in the “Games for mobile and PC browser” and “MMO” areas. However, Square Enix only seems to be really satisfied with the performance of Final Fantasy 14, because the number of subscribers could be increased here compared to the previous year. For the other two areas it says:
- HD Games: Despite the release of several new titles, sales did not reach the level of the previous year.
- Mobile: New titles could not compensate for the poor performance of existing titles.
The following “HD Games” should have a positive effect on the next financial result in the coming months:
- Outriders Worldslayer (already released)
- Power Wash Simulator under test (already published)
- Live A Live – under test (already published)
- Dragon Quest X (to be released Sep 15, 2022)
- Valkyrie Elysium (to be released Sep 29, 2022)
- Star Ocean: The Divine Force (to be released 27 Oct 2022)
- Dragon Quest – Treasures (Releasing 9 Dec 2022)
- Crisis Core – Final Fantasy VII Reunion (coming this winter)
- Forspoken (to be released on January 24, 2023)
In the MMO area, one would like to keep the current number of players from FF14, through “a variety of operational initiatives“.
Reference-www.buffed.de