Square Enix, the studio behind the Final Fantasy games, reported profits for the recently ended fiscal year. The developer attributes its profitability to the success of its mobile and MMO games, such as Final Fantasy 14. However, despite its profitable performance, the game developer continued making structural changes.
In a report released by Square Enix, Final Fantasy 14 was highlighted as the main reason for the company’s “digital financial” positives in the completed fiscal year that ended in March 2024. The 250.1% operating profit was reported despite the studio’s recent releases not performing well. The studio did not have any major releases between April and June. As a result, the studio saw an 18.4% drop in sales compared to the same period last year.
Square Enix reports its financial performance for the completed fiscal year
Square Enix's financials for Q1 are pretty straightforward. Sales down / income up compared to last year Q1, largely due to Final Fantasy XVI and its amortized development costs. The HD Games sub-segment actually made money, too.https://t.co/o58ytl2Yaa pic.twitter.com/TJZbXoaZ3e
— Adam (@King_Seda) August 6, 2024
The latest earnings report by Square Enix stated that its MMO net sales and profits went up compared to last year’s figures. According to the report, MMOs accounted for 68.4% of the company’s operating profits. Square Enix’s mobile games also contributed to the developer’s profitability, accounting for 31.1% of its total operating profits.
These reported figures did not account for the game developer’s current best performer, FF14’s latest expansion, Dawntrail, as it was only launched a month ago. The game did not experience an interlude in sales after its release despite the game being 12 years old. The game set a record during its launch by having the most concurrent number of players since 2013. Final Fantasy XIV: Dawntrail’s release broke the previous record held by Final Fantasy: A Realm Reborn 11 years ago. The new record for concurrent players is attributed to the game’s release on Xbox.
The report noted that Final Fantasy 2021’s Endwalker expansion was one of its best performers alongside Dragon Quest 10. The two MMOs were noted as the main games in the category, netting Square Enix profits over the last full fiscal year.
Square Enix makes structural reforms
Despite a profitable fiscal year, the game developer reported that it would continue with several structural reforms to help meet its profit expectations. Structural reforms started earlier in the year with the game developer laying off staff in the E.U. and the U.S. The game developer announced that it would reboot its game development strategy.
The announcement came after Final Fantasy 16 and Final Fantasy 7 Rebirth failed to meet Square Enix’s initial profit expectations. As part of revamping its strategy, Square Enix also announced that it would release games on multiple platforms. Takshi Kiryu, the company’s CEO, made a statement announcing that the game developer would release games for Xbox consoles. However, while sales in the last year were okay, Square Enix reported lower profits due to incurring high development costs in the same period.
“Square Enix NEEDS to release their games on multiple platforms instead of being constrained to PlayStation to see growth & profit!”
The reforms announced were similar to player feedback on social media. SCO_CYNRAH called for Square Enix to change its approach and release games for multiple platforms instead of being limited by the company’s partnership with PlayStation.
