Square Enix published their Q2 financial results (April – September) of the fiscal year ending March 2024.
Compared to previous years, the net sales of “HD games” were up substantially, up over 48% year-over-year to be precise but overall net income has declined by over 36%.
This is allegedly due to “elevated advertising expenses” alongside underperforming mobile and MMO games, with no specific mention of the financial loss due to Forespoken being mentioned.
Although net sales showed a year-over-year increase of just 5%, operating income experienced a steep decline of over 33% YoY due to higher development costs associated with their games alongside advertising costs.
Among the notable games categorized under ‘HD Games’ were Final Fantasy XVI and Final Fantasy Pixel Remaster, again with no mention of Forespoken which was such a tremendous success it was quickly dumped at landfill.
Maybe Dragon Quest will save them heading into the new year?
Square Enix are more than happy to larp about an increase in total sales figures, especially for the likes of Final Fantasy XVI, of which they’ve neglected to update exactly how many total copies of the game itself have been sold, it was previously reported that the game itself sold just three million units but that was publicized during its launch week.
There have been no updates made since.
Square Enix share prices have been on the decline since the release of Final Fantasy 16, their only saving grace being the continual expansions of Final Fantasy 7’s bastardized remakes of which are touted as being easier to understand for modern audiences.
Another thing is easier to understand is the noticeable flop that was Final Fantasy 16, despite selling over three million copies its blunder alongside Forspoken are as clear as day, raw sales figures are up, but operating income has had a disastrous decline, down by over a third compared to the previous year.
Three million copies might be a lot but in all honestly it’s down substantially compared to previous entries, their efforts to convert the Final Fantasy franchise into this action oriented staple is quickly losing traction with each new installment, we have no actual way of knowing the true costs accociated with its development other than the game was a receptive failure and that its sales “didn’t meet expectations” of Square Enix themselves.
“Expectations” mean absolutely jack shit when it comes to Square Enix. Games such as NieR:Automata exceeded sales expectations and yet it has been well over five years and the closest thing we’ve gotten to any actual continuation has been mobile gacha collaborations and an anime adaptation.
Trials of Mana was another successful Square Enix published game that has gone eerily quiet following its 2020 release despite being deemed a success. Failure is the new success.
Net sales for Square Enix MMOs showed a year-over-year decrease, which is a common trend in non-expansion years for Final Fantasy XIV.
Its sales will likely rebound by next summer with the release of the Dawntrail expansion, though I am quite surprised that garbage promotions such as with KFC’s own Colonel Sanders didn’t see a massive increase in profits for their MMO segment.
Alongside MMO sales taking a dive, Square Enix is losing its footing on the mobile gacha market as well, with PC browser and smart phone games performing poorly, how poorly might you ask?
How about a 40% year-over-year decline.
Just this year alone Square Enix pulled the plug on its Echoes of Mana mobile game for its one year anniversary, they also shut down the Dragon Quest The Adventure of Dai: A Hero’s Bond mobile game on the 26th of April with the game only going live back in September of 2021.
Square Enix also nuked Final Fantasy 7: The First Soldier, a mobile game spinoff which released on November 17 2021 met its unfortunate end on January 11th 2023.
Square Enix has a nasty habit of shutting anything down that doesn’t generate substantial profit, Forspoken was such a catastrophic loss for the company they dissolved the studio that developed it only a month after release.
Square Enix has marking a notable decrease in operating income compared to the preceding two years. This decline aligns with the recent drop in the company’s stock price, falling below 5,000 yen, reaching its lowest point since May 2020, this is mainly attributed to continual production of lackluster game titles which are more focused towards ESG inclusivity, of which Square Enix is a massive believer in ESG.
Lackluster “WOKE” games, such as Final Fantasy 16 and Forespoken, poorly written garbage, it’s not selling in high enough numbers that the overinflated development costs demand of them. Square Enix also continues to gain ESG scoring by censoring “problematic” content such as female femininity or even low poly renditions of undergarments.
There’s no saving this company, Square Enix are seemingly that strapped for cash they offloaded their entire western games division to the Embracer group for a mere $300 Million. This includes whole studios such as Crystal Dynamics including various Intellectual Properties such as the Deus Ex and Tomb Raider franchises.
Square Enix will continue to produce slop, they will continue to censor games, their only salvation at this stage is the continual milkage of Final Fantasy 7’s remake, only suitable for their modern audiences while old fans of the franchise look on in horror as Square simply tarnish one of if not their best game ever made with Final Fantasy 7: Rebirth.
I am abso-fucking-lutely sure that “FOAMSTARS” is the savior that Square Enix really need right about now, a third person Splatoon knockoff which aims to release sometime in 2024 for Sony PlayStation consoles.
