Square Enix Receives Help From Kingdom Hearts III, FFXIV, DQX And ​​Publications During A Difficult Year

By Sato . May 13, 2019. 5:00 am

Square Enix reported its financial results for the year ended March 31, 2019. Kingdom Hearts III and the MMOs performed well while Left alive and smartphone games have performed poorly.

The company recorded a year-over-year increase in net sales of 8.2%, driven by large security launches including Kingdom Hearts III, The Shadow of Tomb Raider, and Just Cause 4.

However, operating income decreased by 35.7% due to higher costs associated with the exit of new securities.

Digital sales of Square Enix games have increased on average by about 40% per year over the past five years.

The MMORPG department has experienced interesting growth. As you can see in the chart above, net sales and operating income have always been higher than in previous years. Final Fantasy XIV and Dragon Quest X extensions released, but in the last fiscal year, which had nothing to gain for any of the MMO stock, it has hit record highs for years without expansion.

In units sold by region, there was a strong increase in North America / Europe, but a decline in Japan, Asia and other regions. In total, it has grown by more than two million units sold worldwide.

Square Enix provided the forecast for the year ending March 2020 and predicts a global decline in all regions, with a total of 26.55 million to 18.27 million. These figures cover HD and MMO games.

In the case of smart device games and PC browsers, many titles launched in recent years have underperformed and failed to increase sales from existing titles. Square Enix also notes that a decline in license revenue also resulted in a year-on-year decline in net sales and operating income.

Square Enix arcade games saw year-over-year revenue growth thanks to new machines, but operating profit decreased due to higher depreciation related to the installation of new machines .

In the publications sector, digital publications have risen sharply and the printed format has been partially integrated with the exercise. the Manga Up! The BD application recorded higher sales, which resulted in higher net sales and operating income compared to the previous year.

In the merchandising sector, Square Enix stated that net sales and operating profit had dropped due to the major hurdle of releasing new merchandise based on key intellectual property a year ago and strategic investments to develop new activities.

Here are some highlights of the information meeting about the company's financial results via @mochi_wsj:

• NieR: Automata has reached 4 million.
• Kingdom Hearts III has made a good start, is considering promoting with DLC and such
• Left alive & # 39;The results were extremely poor.
• Traveling Octopathus is doing well with ongoing sales.
• Romancing SaGa Re; Universe goes strong with the high expectations of society.
• Monthly subscriptions for online games work well, especially Final Fantasy XIV who continues to increase his players.
• The publications have worked well, the company will aim to better put it in synergy with the games.
• The new game information will not only be at E3, we will hear more from this month
• Square Enix is ​​working with Tencent on something, more information to come (maybe).