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July 28, 2021
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Digital software and catalog titles are driving sales at Square Enix

Digital software and catalog titles are driving sales at Square Enix

May 13, 2021 | By Chris Kerr




Net sales and operating income in Square Enix's game-focused Digital Entertainment arm increased year-on-year thanks to growing digital sales and "brisk" sales of catalog titles in the HD Games sub-segment. 

According to the company's financials for the full-year ended March 31, 2021, those factors helped drive net sales in the segment to 263.9 billion yen ($2.4 billion), an increase of 39.9 percent year-on-year, while operating income also rose by 42.9 percent to 50.5 billion yen ($460.9 million).

Square Enix indicated that upswing was also the result of burgeoning licensing income and new releases like Final Fantasy VII Remake, and noted that its Smart Device/PC Browser sub-segment played its part thanks to "solid performances" from titles like Dragon Quest Walk and War of the Visions: Final Fantasy Brave Exvius.

The Japanese publisher added that "recurring revenue was solid" in its MMO sub-segment, despite net sales falling year-on-year due to a lack of new expansion packs for Final Fantasy XIV and Dragon Quest X

Across the entire segment, combined sales of packaged and digital software totaled 49.9 million units, up on the 33.42 million units Square Enix sold during FY2020 -- with digital sales accounting for 39.6 million of that total.

Overall, Square Enix's consolidated net sales increased by 27.6 percent year-on-year to 332.5 billion yen ($3.03 billion), while profits rose by 26.2 percent to 26.9 billion yen ($245.5 million). 

Looking ahead to the end of the next fiscal year on March 31, 2022, the company is forecasting net sales of 340 billion yen ($3.1 billion) and profits of 24 billion yen ($219 million).



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