The new report from Square Enix for the last financial quarter of 2024 is here and emphasizes how essential Final Fantasy XIV truly is for the Japanese publisher in the current weak phase.
What does the new financial report reveal? Below, MeinMMO summarizes the key findings from the latest business report from Square Enix (via square-enix.com):
- Compared to the corresponding quarter of the previous business year, net revenues have dropped significantly, from 85.6 billion yen to 69.9 billion yen. However, the publisher can rejoice over significantly higher operating income – 3 billion yen in the previous year versus 10.8 billion yen in the last quarter.
- The largest portion of operating income comes from the “Digital Entertainment” sector (which includes all Square Enix games), namely 9.7 billion yen.
- Due to a lack of new releases and the poor results of blockbusters like Final Fantasy XVI and Final Fantasy VII Rebirth, the “HD Games” sector reports weak operating income of 0.05 billion yen. At least: In the corresponding quarter from the previous year, operational losses were reported here.
- Also weak, but significantly stronger than the “HD Games”, is the area of “Games for Smart Devices/PC Browser,” mainly encompassing mobile titles. They were able to generate operating income of 3 billion yen.
- The largest portion of operating income, however, comes from the third category, the “MMOs.” Dragon Quest X and Final Fantasy XIV Online deliver 6.6 billion yen, with the launch of the new expansion Dawntrail from July 2024 not yet accounted for.
- In the report, Square Enix emphasizes that the rising operating income in the “Digital Entertainment” sector can partly be explained by lower development costs and advertising expenses.
The new expansion Dawntrail for Final Fantasy XIV will only impact the next financial report. Here is the well-produced launch trailer for the addon:
What do these insights mean? Essentially, the current report underscores again what has also been shown in Square Enix’s previous financial data: The old pillar of classic premium games is crumbling. Instead, mobile and service games are taking on increasingly important roles.
In the past, Square Enix has repeatedly announced its intention to adjust its internal course and implement a strategic change. The declining development costs and advertising expenses are a result of measures already taken.
Future measures will include further increasing the focus on mobile and service games. This aligns with the announcement on August 6, 2024, that Square Enix is working with the Chinese company Tencent on a mobile version of FFXIV: Final Fantasy XIV targets one of the largest markets in the world with its release on a new platform
