Square Enix Financials

VGC reports on Square Enix's latest financial reporting, saying that the Japanese publisher is reporting net sales of ¥23.7bn, which is down 30 percent from the ¥34.1bn of the previous quarter when they released the Final Fantasy VII Remake. They note analysis that the enormous cost of developing Marvel's Avengers also dragged down their bottom line:
Operating income took an even bigger hit from the previous quarter, down from ¥12.5bn profit to a ¥6.5bn loss. According to Japan-based analyst David Gibson, the figures suggest that Avengers cost Square Enix almost $190m to produce and market but only sold around 3 million units.

“It looks like the total cost of the game is closer to $170m-$190m given they only expense 70% of cost in the [quarter] plus marketing costs,” he said. “Why someone didn’t say stop post the multiplayer beta will remain a mystery. Square are adamant they can make a recovery.”

Taking into account the first six months ended September 30, Square Enix’s revenues were up 43% year-over-year to ¥172bn ($1.67bn) and profits were up 46% to ¥16bn ($155m). This was driven by Final Fantasy VII Remake, as well as games for mobile devices and PC browsers.
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Re: Square Enix Financials
Nov 8, 2020, 15:09
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Re: Square Enix Financials Nov 8, 2020, 15:09
Nov 8, 2020, 15:09
 
Parallax Abstraction wrote on Nov 8, 2020, 13:45:
The game has only sold 3 million units 2 months after launch across all platforms. That may sound like a lot, except when the estimation of the costs to make and market it were $190M dollars, plus the ongoing costs of maintaining the "live service" elements. It's player base on PC has gone off a cliff, so has its streaming numbers and most people I know who were super hyped for it got bored after a couple of weeks because like every live service game, there's no end game content. This is basically Anthem, except is cost even more because a huge chunk of the costs and profits go back to Disney. The Marvel superfans who will buy anything with that name on it have already bought it and now the word is out that it's actually a mediocre game at best. I think Square Enix will have to eat some financial crow on this one. But as someone who was fed up with this after 30 minutes with the free beta, they probably should.

Definitely Anthem but at least one full notch worse even.
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