Recently, Square Enix released its official financial statement for the fiscal year ending on March 31, 2020. Unlike other major studios, including Capcom and Nintendo, Square Enix’s results were not all good news.
While it performed well in the MMO, PC Browser, and Smart Device gaming categories, net sales for Square Enix’s video game department were down overall when compared to the fiscal year ending in 2019. The company’s report cited “high hurdles set by major releases” in the previous year – Final Fantasy XV Pocket Edition, Secret of Mana, and Octopath Traveler – as well as a lack of major HD releases in the most recent fiscal year.
This loss occurred despite the debut of Romancing SaGa 3, the Switch release of Dragon Quest XI: Echoes of an Elusive Age, and the Re: mind DLC for Kingdom Hearts III.
The poor performance of HD releases led to a net sales loss for video games overall. However, MMOs such as Final Fantasy XIV and Dragon Quest X as well as mobile games including Romancing SaGa Re;univerSe and Dragon Quest Walk performed well, meaning that all hope is definitely not lost for Square Enix. Additionally, non-video game departments including merchandising and printed media also experienced an increase in sales.
Square Enix was reluctant to set specific goals or make predictions for the upcoming fiscal year, as they recognized the global impact of the ongoing COVID-19 pandemic. However, the company does hope to increase both sales and operating income in the mid-term future. The report stated that Square Enix will achieve this by focusing on digital sales, developing more cloud-centric games, and promoting the “Games as a Service” development and sales strategy.
Square Enix may also be able to overcome this slight dip in sales due to the success of the recent Final Fantasy VII Remake, which continues to show strong figures despite coronavirus related lockdowns in place across the world.