Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
November 26, 2020
arrowPress Releases







If you enjoy reading this site, you might also want to check out these UBM Tech sites:


'HD Games' profit dips at Square Enix following  Marvel's Avengers  launch

'HD Games' profit dips at Square Enix following Marvel's Avengers launch

November 6, 2020 | By Alissa McAloon




As a whole, Square Enix reported a year-over-year increase in sales and operating income half way through the fiscal year but numbers for its HD Games business alone paints a troubling portrait of its September launch, Marvel's Avengers.

For the company as a whole, Square Enix shows a 52 billion yen (~$503.6 million) increase in net sales year-over-year, marking down 172.7 billion yen (~$1.7 billion) in sales for the six month period ending September 30, 2020.

Operating income, or profit minus certain expenses, also saw a year-over-year increase, coming in at 31.6 billion yen (~$306 million) for Q1 and Q2, compared to 15.9 billion yen (~$154 million) the year before.

The digital entertainment business housing Square Enix's video game dealings reported 142.4 billion yen (~$1.4 billion) in sales, up from 85.4 billion yen (~$827.2 million), and 33.8 billion yen (~$327.4 million) in operating income, up from 16.6 billion yen (~$160.8 million).

Digital Entertainment is further broken down into MMO and HD Game categories, and that's where the seeming impact from Marvel's Avengers reveals itself. The MMO segment on its own looks to be going strong: it saw a slight decline in sales year-over-year due to competition from last year's major Final Fantasy XIV expansion launch, though operating income is up year-over-year due to strong subscriber numbers in FFXIV.

For HD Games, sales are up year-over-year, but seemingly not by enough to balance out development costs as operating income dipped into the negatives during Q2 as shown in the chart below. 



Related Jobs

Square Enix Co., Ltd.
Square Enix Co., Ltd. — Tokyo, Japan
[11.24.20]

Experienced Game Developer
Deep Silver Volition
Deep Silver Volition — Champaign, Illinois, United States
[11.24.20]

Senior Technical Designer
Purdue University
Purdue University — West Lafayette, Indiana, United States
[11.24.20]

Assistant Professor in Game Design and Development
Sucker Punch Productions
Sucker Punch Productions — Bellevue, Washington, United States
[11.23.20]

Senior Camera Programmer









Loading Comments

loader image