Square Enix reported declining revenue for the fiscal year ending December 31, 2022, notwithstanding a strong year with new game releases. Square Enix revealed the specifics in their quarterly earnings report.
In 2022, Square Enix produced a plethora of titles, including Harvestella, Powerwash Simulator, Valkyrie Elysium, and many more. Three main Square Enix studios as well as numerous important intellectual properties, were transferred to Embracer within the same year for $300 million. Square Enix looks to be going through a rough patch, and the company’s latest financials indicate that.
Square Enix’s most recent fiscal figures showed sales revenue of 255.6 billion yen ($1.95bn), a decrease of just under 7% compared to the same nine-month timeframe in the prior year. Its net margin of 41.3 billion yen ($310 million) was down 17.6 percent year over year.
In spite of releasing many new releases, the business says that sales of its HD games (those that don’t qualify as live service or mobile/PC browser) have not met the threshold of the preceding year. The article goes on to say that the studio’s new products for smart devices/PC haven’t been capable of making up for the poor sales of the already-released games. The report’s numbers, however, don’t take into consideration several of Square Enix’s newest and forthcoming titles.
A significant Final Fantasy title did not take place in 2022, while the remaster for Crisis Core: Final Fantasy 7 Reunion was released in December by the company. Square Enix’s major releases in the preceding fiscal year were the remake of Final Fantasy 7 and the enormous Endwalker expansion for Final Fantasy 14. In spite of the franchise’s reputation for regular news updates, Square Enix’s annual report reveals that the corporation has no plans to expand the MMO in the next year. In any case, with the June release of Final Fantasy 16, the company is anticipated to see improved commercial returns.
A significant Final Fantasy title did not take place in 2022, while the remaster for Crisis Core: Final Fantasy 7 Reunion was released in December by the company. Square Enix’s major releases in the preceding fiscal year were the remake of Final Fantasy 7 and the enormous Endwalker expansion for Final Fantasy 14. In spite of the franchise’s reputation for regular news updates, Square Enix’s annual report reveals that the corporation has no plans to expand the MMO in the next year. In any case, with the June release of Final Fantasy 16, the company is anticipated to see improved commercial returns.
Especially in light of a number of Square Enix’s latest high titles like Forspoken, the future holds much intrigue. Even though Forspoken’s sales figures have yet to be included in the most recent financial statement, the AAA game hasn’t had the greatest of beginnings, with even indie titles like Hi-Fi Rush outperforming it in terms of income.
Whatever the situation, Square Enix would likely double down on their lineup of titles for 2023 in an effort to excite its following generally. Though how the publisher’s stats shake out remains to be seen.
