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 Deus Ex , social games drive Square Enix revenue and profit growth

Deus Ex, social games drive Square Enix revenue and profit growth

February 3, 2012 | By Eric Caoili




Square Enix reported notable revenue and profit increases from its game segment during the April to December 2011 period, which were driven by Deus Ex: Human Revolution and its online/social titles.

While the Tokyo-headquartered company's total sales for all of its segments were flat during those nine months, revenues from its video game category grew and now makes up a larger percentage of Square Enix's business.

Square Enix's games segment made up 52 percent of its total revenues during the same period in 2010, but it's now up to 56 percent. Meanwhile sales from its arcade, publishing (e.g. comics), and merchandising units fell, compared to April to December 2010.

The games category grew 6 percent year-over-year in its most recent three quarters, from ¥50.57 billion ($663.7 million) to now ¥53.7 billion ($704.7 million). Its operating profit also jumped by 11.5 percent from ¥11.16 billion ($146.5 million) to ¥12.45 billion ($169.4 million).

It attributed those increases to worldwide sales from Deus Ex: Human Revolution, as well as continued expansion from its online and smartphone titles. Japanese sales for Final Fantasy XIII-2 also contributed, though sales for that are tracking far behind Final Fantasy XIII's numbers.

As of September last year, Deus Ex: Human Revolution had sold more than 2.18 million copies across all territories after releasing in August. Final Fantasy XIII-2 shipped in North America, Europe, and Australia this week.

For its full-year fiscal results (ending March 2012), Square Enix expects revenues for its games segment to reach ¥70 billion ($918.6 million), up 9 percent from the previous fiscal year's ¥64.2 billion ($842.5 million) -- but much lower than the year prior's ¥120.12 billion ($1.58 billion).

Square Enix believes profits will rise 24 percent from ¥11.28 billion ($148 million) in the previous fiscal year to ¥14 billion ($183.7 million), keeping in line with its previous guidance. The publisher hasn't changed its forecast due to expected development costs for current projects.


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