Square Enix Reports 6% Decline in Annual Sales

Square Enix has published its financial results for the year ending March 31, revealing a 6% decrease in annual sales, which totaled approximately $2.5 billion. Key highlights from the report include: - Annual sales: ¥343 billion ($2.54 billion), representing a 6% year-over-year decrease - Profit: ¥49.3 billion ($364 million), down 3% from the previous year - Digital Entertainment revenue: ¥246 billion ($1.8 billion), a 12% year-over-year decline The HD Games segment generated ¥78.5 billion ($580 million) in sales, marking a 10% decrease from the previous year. Notable releases during this period included Forspoken, Octopath Traveler 2, and Crisis Core: Final Fantasy 7 Reunion. In comparison, the previous year's major titles were Outriders, Nier Replicant, and Marvel's Guardians of the Galaxy. The company reported selling 22.44 million copies of games, with 15.85 million being digital downloads and 6.59 million being physical copies. Revenue from Mobile/PC Browser games decreased by 13% year-over-year to ¥113.6 billion ($840 million). Square Enix highlighted a lineup of 18 significant titles for the segment, with two having been launched during the fiscal year. However, the company noted that new releases were unable to offset the weak performance of existing titles. The company's MMO segment, which includes Final Fantasy XIV and Dragon Quest X, saw a 14% year-over-year decline in revenue to ¥53.3 billion ($394 million). Although no expansion packs were released during the year, Square Enix focused on user retention through operational initiatives. The company plans to consolidate project resources, including its merger with Luminous Productions, and is considering mergers and acquisitions, establishing new studios, and taking minority stakes in other companies to strengthen its in-house development capabilities. Square Enix forecasts a 5% increase in revenue for the fiscal year ending March 31, 2024, to ¥360 billion ($2.7 billion). The upcoming Final Fantasy 16, scheduled for release on June 22 across multiple platforms, is expected to contribute to the company's growth.