Square Enix sales drop year-on-year, despite release of Final Fantasy 7 Rebirth

Sales of Square Enix games have experienced a decline compared to the previous year, despite the highly anticipated launch of Final Fantasy 7 Rebirth.

According to the latest earnings report, the company reported an overall net sales drop of 18.4 percent year-on-year for the most recent quarter. This decrease is largely attributed to a fall in sales of new game titles. In contrast, the same quarter in the previous year featured notable releases such as Final Fantasy 16 and the Final Fantasy Pixel Remasters.

Despite the downturn in game sales, Square Enix has managed to turn a profit this year, largely due to reduced development cost amortization and lower advertising expenses. Additionally, the company’s MMO segment reported an increase in both sales and profits compared to the previous year. Notably, the latest quarter did not account for the release of the Final Fantasy 14 expansion, Dawntrail, in July, but initial interest suggests a potential boost in profits for the upcoming quarter.

On the mobile gaming front, sales have also seen a decline, attributed to weak performance from existing titles, which likely includes the free-to-play gacha game Final Fantasy 7 Ever Crisis released last year. Nevertheless, profits from mobile games have increased due to the optimization of operational expenses.

Square Enix remains committed to enhancing the competitiveness and profitability of its business. Earlier this year, company president Takashi Kiryu announced a thorough review of the development system aimed at improving quality and profitability.

As part of this review, the company decided to abandon £112 million worth of in-development projects, which contributed to losses in the previous financial year. In response, Square Enix is now aggressively pursuing a multiplatform strategy.

This indicates that Square Enix is currently in a phase of restructuring, managing to maintain profitability despite the disappointing sales of its existing titles. Additionally, the company has laid off staff in its US and European offices as part of broader structural reforms.

While specific sales figures for Final Fantasy 7 Rebirth were not included in the financial report, earlier assessments indicated that sales have been underperforming. The third and final installment of this trilogy has yet to be fully unveiled, and a release window has not been confirmed. However, director Naoki Hamaguchi has confirmed that the popular card game Queen’s Blood will return in a revamped format.