Square Enix has released their financial results for FY2024 Q1, which paints a mixed picture when it comes to their success in the realm of game releases.
A positive for them would be that net game sales increased year-over-year, thanks in part from the release of their blockbuster title, Final Fantasy XVI. Aided by the release of the pixel remasters of the classic Final Fantasy titles as well.
These new releases were able to offset the decline they saw from MMO sales, which should turn around when the Final Fantasy XIV: Dawntrail expansion launches later this summer.
However what may be more important is that Square Enix’s operating income dropped by a staggering 78% over the same time period, which the company placed some of the blame on development costs.
No one is surprised their flagship launch likely had a high cost to develop. Though part of these losses can also be blamed on the development costs of their other big RPG launch this year in Forspoken, which was reported to have a budget of at least $100 million.
Needless to say, it’s also be widely reported the game failed to meet sales expectations, with the original development team being folded into the main branch following the game’s tepid launch.
Things should be turning around for the company despite this result though. Square Enix have recently promised better Xbox support, giving them a new platform to improve their revenue stream as they reach a new audience with their games.