Square Enix announced its financial results for the fiscal year ending March 31, 2023, and while the company released several high-profile games during the year, including Octopath Traveler II, Crisis Core -Final Fantasy VII- Reunion, and Live A Live, sales for the digital entertainment sector (ie console games, MMOs, mobile games) fell 12.2% from ¥279.6 billion to ¥245.5 billion.
The company’s total net sales also decreased by approximately 6% from ¥365.2 billion to ¥343.2 billion. All in all, it’s a relatively small drop and doesn’t appear to have had a significant impact on the company’s share price, which currently sits at ¥6,750, its highest level since November 2022.
As for the reason for the decline, Square Enix states that this year’s releases simply did not generate as much revenue as those of FY22. As a reminder, this includes titles such as Guardians of the Galaxy, Outridersand NieR replicant ver.1.22474487139. It is also noted that FY23 did not see the launch of a major expansion for Final Fantasy XIVa game that undoubtedly generates huge revenues.
However, looking ahead, the company expects its FY24 period (ending March 31, 2024) to be slightly rosier, forecasting total net sales of ¥360 billion, up nearly 5% from this year’s ¥343.2 billion. Of course, upcoming Final Fantasy XVI for PlayStation 5 is sure to be a big hit, especially with the introduction of multi-region console bundles and PS5 faceplates and controllers in Japan.
Finally, much to our chagrin, Square Enix seems to be doubling down on its efforts to make NFTs and blockchains a thing. It says it will “continue to invest globally” and “accelerate the development of the blockchain game,” so there you go.
