Sales of Square Enix games have declined year-on-year, despite the high-profile release of Final Fantasy 7 Rebirth.
According to the latest earnings report, the company's total net sales fell 18.4 percent in the last quarter compared to the previous year.
This is partly due to a decline in new game sales. For comparison, Final Fantasy 16 and Final Fantasy Pixel Remasters were released in the same quarter of 2023.
Due to lower depreciation on development costs and advertising expenses, the company still made a profit with its games this year.
In addition, the MMO sub-segment saw a year-over-year increase in revenue and profit. This latest quarter does not include the Final Fantasy 14 expansion Dawntrail, released in July, although interest has clearly increased ahead of its release. Expect a significant increase in profits in the next quarterly results.
Mobile games also saw revenue decline “due to weak sales of existing titles,” presumably including the release of free-to-play gacha game Final Fantasy 7 Ever Crisis last year. However, profits increased due to “optimization of operating costs.”
Overall, Square Enix continues its “determined efforts to strengthen the competitiveness and profitability” of its business.
At the beginning of the year, company president Takashi Kiryu announced a review of the company's development system in order to increase quality and profits.
In this context, the company has abandoned development projects worth £112 million that had resulted in a loss in the previous financial year. The company is now “aggressively” pursuing a multi-platform strategy.
So it is clear that Square Enix is in a reboot phase and that the restructuring has resulted in a profit despite disappointing sales of its existing games.
As part of “structural reforms,” the company also laid off employees in its U.S. and European offices.
Final Fantasy 7 Rebirth's sales figures were not specifically included in this financial report, despite previously reporting “below average” sales.
The third and final installment in the trilogy has yet to be fully revealed, nor has a release date been given, but director Naoki Hamaguchi has confirmed that the popular card game Queen's Blood will return in a “remastered” form.