Square Enix Sees 5% Rise in H1 Sales Amid 58% Profit Decline

Square Enix has unveiled its financial results for the first half of the fiscal year, ending September 30, 2023, with net sales reaching ¥172 billion ($1.1 billion), representing a 5% year-over-year increase. However, the company's profits plummeted by 58% to ¥16.6 billion ($110 million). The Digital Entertainment division, which encompasses HD Games, MMO, and mobile/PC browser segments, generated ¥122 billion ($810 million) in net sales, marking a 4% rise from the previous year. The HD Games segment experienced a significant boost, with net sales surging 49% to ¥43.7 billion ($290 million), driven by the successful launches of Final Fantasy 16 and Final Fantasy Pixel Master. Despite this, Square Enix's president, Takashi Kiryu, expressed concerns that Final Fantasy 16 did not meet sales expectations, citing the slow adoption of the PlayStation 5 console as a contributing factor. The company's mobile/PC browser games segment saw a 7% decline in revenue, while the MMO segment experienced a 16% drop. Square Enix reported selling 12.17 million games during the period, a 29% decrease from the previous year. Looking ahead, the company has reaffirmed its net sales forecast of ¥360 billion ($2.4 billion) for the fiscal year ending March 2024, representing a 5% increase. The firm is also formulating a new medium-term business plan, focusing on diversifying its earnings sources and enhancing productivity. Upcoming releases include Dragon Quest Monsters: The Dark Prince, Final Fantasy 7 Rebirth, and the Xbox launch of Final Fantasy 14.