Final Fantasy XIV fiscal 2022 success might clarify why Square Enix bought off western studios

Screenshot through Square Enix YouTube

Calling Final Fantasy XIV in style and profitable is a large understatement at this level. The MMO was named as the rationale for Square Enix’s monetary success within the calendar yr 2021. Now that fiscal yr 2022 outcomes are out, we are able to see simply how vital Final Fantasy XIV to the corporate’s general enterprise mannequin. Looking at the way it carried out from April 2021 by March 2022, it’s straightforward to guess why Square bought off its western studios.

The monetary outcomes (through show that internet gross sales rose by practically 10%, for a complete of ¥354 billion (a bit greater than $2.7 billion USD). That’s good general, however the rise was as a consequence of MMOs like Final Fantasy XIV. Square credit a rise in subscribers and the discharge of the Endwalker growth final November as causes for the bump.

Related: Guardians of the Galaxy’s ‘underperformance’ is indicative of a wider downside

When it involves different video games, nevertheless, there’s a special story. Marvel’s Guardians of the Galaxy, Nier Replicant, and Outriders had been particularly referred to as for having “net sales decline versus the previous fiscal year.” Of these three, solely Nier is an in-house product: Guardians of the Galaxy was developed by Eidos Montreal, and Outriders was made by People Can Fly, a Polish studio. That’s to not say the video games weren’t nonetheless turning a revenue, however if you examine the “net sales decline” to the roaring success of Final Fantasy XIV, you may see why Square would need to trim the fats, so to talk.

Eidos Montreal, Square Enix Montreal, and Crystal Dynamics had been bought to Embracer Group at the start of May. The cause for his or her sale was not explicitly given, however the numbers allow us to make an informed guess. Square principally bad-mouthed Crystal Dynamics and its Tomb Raider trilogy up to now, so the sale can solely be good for all events concerned.

As for the way forward for Square Enix, the corporate president has doubled down on the blockchain, citing user-generated content material as a cause to pursue the likes of NFTs. Most gamers would quite see a deal with creating video games, just like the Tactics Ogre: Reborn trademark that was just lately filed in Japan.