square-enix-suffers-declining-financial-results,-but-final-fantasy-xiv-continues-going-strong

Square Enix suffers declining monetary outcomes, however Final Fantasy XIV continues going sturdy

Image through Square Enix

Square Enix had its annual earnings name this week, and the outcomes have proved enlightening. In the monetary outcomes report for the primary quarter of the present fiscal 12 months — which is to say, April to June — the corporate appeared to undergo from underwhelming figures in lots of its key enterprise segments, with one notable exception.

Despite a drop in each complete web gross sales and operational earnings of 15.5% and 16.7% respectively in comparison with the identical quarter final 12 months, Q1 2022 truly noticed a rise in income from its MMO division, together with its flagship title Final Fantasy XIV. While the corporate’s HD video games division “did not reach the level of previous years” and its cellular gaming phase discovered new entries “unable to offset weak performances from existing titles,” the MMO division — which includes simply three video games — loved sturdy numbers, with a particular point out given to Final Fantasy XIV’s rising subscriber numbers 12 months on 12 months.

Despite its sturdy efficiency, Square Enix said within the report that there have been no plans to launch any additional expansions for Final Fantasy XIV this monetary 12 months, opting as a substitute to give attention to consumer retention by way of “a variety of operational initiatives.” This isn’t significantly uncommon, nevertheless — the newest enlargement, Endwalker, got here out again in December 2021, and historically the foremost expansions have launched each couple of years, with some smaller updates sprinkled in between.

This would all appear to lend lots of credence to the strengths of the games-as-a-service enterprise mannequin, although the rest of the 2022/23 monetary 12 months would possibly see a return to kind for HD video games. Since the report didn’t transcend June 30, notable July releases corresponding to Live A Live and Powerwash Simulator aren’t included within the figures, and the remainder of the 12 months will see much-anticipated releases together with Forspoken and Crisis Core Final Fantasy VII Reunion.