Wednesday November 07, 2018

Square Enix Financial Results Show a Significant Decline in Sales

Square Enix Holdings CO., LTD has released its financial results for the six-month period ending September 30, 2018. Titles that the company launched for PC browsers and smart devices failed to generate an income. Income from the MMORPG FFXIV was down compared to last year when the Stormblood expansion launched. Digital comic books offset declines in paper comic book sales. The business strategy for Luminous Productions has been changed to focus on high-quality AAA games. This led to a 3,733 million yen ($33 million USD) write-off. On a positive note, high-margin digital sales are remaining stable even though overall digital sales decreased, and the company says that it wants to capitalize on this by adopting subscription models.

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It's not overly clear what has actually changed at Luminous Productions, since the original announcement said the studio would be "development new AAA titles and bringing innovative game and other entertainment content to a global audience". It's likely plans for "other entertainment content" - which we surmised to translate as transmedia products like Final Fantasy XV's full-length prequel movie - have been dropped, instead focusing specifically on games.