Square Enix Reports $1.6 Billion in Revenue Over Nine Months, a Decline from Previous Year

Square Enix has unveiled its financial results for the nine-month period ending December 31, 2024, revealing a decline in overall sales, which the company attributes to underperforming existing titles in its mobile and PC browser segments. The Digital Entertainment division, encompassing the company's video game business, also experienced a downturn in revenue due to new titles failing to match the sales of the previous year's blockbusters, Final Fantasy 16 and Dragon Quest: The Dark Prince. Key highlights include: Net sales of ¥248.5 billion ($1.6 billion), a 3.5% year-over-year decrease; a profit of ¥24.7 billion ($161.9 million), representing a 7.7% year-over-year decline; and Digital Entertainment net sales of ¥160.3 billion ($1.05 billion), down 10.7% year-over-year. Despite the decline in overall Digital Entertainment sales, the company's HD games subsection saw a significant 70.3% increase in operating profit, reaching ¥4.6 billion ($30.2 million), driven by reduced development costs, lower advertising expenses, and stronger-than-expected sales of Dragon Quest 3 HD-2D. The MMO sub-segment also witnessed a 26.4% increase in net sales, totaling ¥44 billion ($288.6 million), following the successful release of Final Fantasy 14: Dawntrail in July 2024. However, the mobile and PC browser sub-segment suffered a substantial 58.5% decline in operating profit, dropping to ¥5.6 billion ($36.7 million), due to underperforming existing titles and a write-down associated with content production. Looking ahead, Square Enix has reaffirmed its forecast for the fiscal year, which remains unchanged from the projections announced in May.