Square Enix Posts Net Loss After Console Game Sales Fell Short

By Spencer . November 5, 2012 . 11:42pm

imageAround the same time last year, Square Enix posted a net income worth 3,704 million yen. This fiscal year isn’t looking as good for the Final Fantasy publisher. Square Enix reported a 5,480 million yen ($68 million) net loss for the period between April 1, 2012 to September 30, 2012.

 

While sales of Dragon Quest Monsters: Terry’s Wonderland 3D were favorable, console game sales fell short for the six month period. Square Enix released Kingdom Hearts 3D, Theatrhythm Final Fantasy, Heroes of Ruin, Quantum Conundrum, Dragon Quest X, and Sleeping Dogs this period. Earlier, Square Enix said sales of a "major HD title" were sluggish.

 

Social games Sengoku Ixa and Final Fantasy Brigade were favorable and Dragon Quest X has a growing user base. Arcade game sales and revenue from machines like Gunslinger Stratos were also down. Their comic business posted a profit, but it was down 16.9% compared to last year. On the plus side for Square Enix, Bravely Default: Flying Fairy is doing really well in Japan.


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  • Ethan_Twain

    Wow!  I hadn’t realized just how much software Square Enix has been putting on the 3DS.  Four games this quarter, and Bravely Default just came out too.  Would it be unreasonable to expect Dragon Quest XI to show up on the 3DS at some point? Dragon Quest has sold very well on both the DS and 3DS, and traditional RPGs as a genre have been doing well on the 3DS.  Consider also that the last few single player Dragon Quest games were made by Level 5, but Dragon Quest X was made by Square Enix internally.  It’s very plausible that DQ XI has been in development by that team even as Square worked on DQ X.

    • http://www.siliconera.com/ Ishaan

      Dragon Quest XI is very likely to show up on the 3DS. I have very little doubt they’re building up to it with the remakes and spin-off titles that they’ve been putting out. It’ll probably be a couple years, though. :)

      • ronin4life

        Do you think DQIIX(or would it be VIII… damn roman numerals…>.<;;) will end up on 3ds?

        • Ethan_Twain

          Just to make things a little more clear, Ishaan and I here are agreeing that Dragon Quest 11 will probably be a 3DS game in a couple years.  Dragon Quest 7 has already been announced as a 3DS remake.  Dragon Quest 8 (the PS2 entry) I reckon will probably show up eventually too.  There have been PS2 to 3DS ports in the past, so we know it’s doable technology wise.  Since Square Enix have been releasing remakes of all their Dragon Quest games for the DS and 3DS in sequence, I see absolutely no reason why they would stop at DQ 7.

          Something else to consider:  DQ 8 was made by Level 5, and that company has released a couple financial flops of late.  I imagine they would love to get a contract to do a Dragon Quest port guaranteed to sell millions right about now.  Stable, reliable work they wouldn’t even be publishing themselves.

          Let’s not get too far ahead of ourselves though, DQ 7 3D isn’t even out yet.  We’ve got another year and a half or so of waiting to do before we see anything DQ 8 related, at minimum.

          • http://www.siliconera.com/ Ishaan

            I actually wouldn’t be surprised if DQVIII’s remake/port—should one happen—were to happen after DQXI is released. DQVIII is still “relatively” new, and I think 2014-2015 would be a good timeframe for XI to come out. 

  • Christian Wright

    square is doing so many things wrong. no type-0 release outside japan. no ps3 version of dissidia with online multiplayer :P (keep dreaming huh?), no versus 13, and no kingdom hearts 3.

    • Godmars

       Its this console generation in general – a lot of companies just didn’t know what to do with the hardware.

    • http://www.facebook.com/jefriputra Jeff

      maybe because of high cost-low return expectation and piracy in both psp and ps3?

      • Nemesis_Dawn

        PS3 piracy is still very low compared to other systems. 

        • http://www.facebook.com/jefriputra Jeff

           yep, as far as i know it only work on old firmware, and the system wit old firmware is very rare,

      • Christian Wright

        psp yes but they could release it digitally to lower the chances of that. i doubt we’re getting black rock shooter too. japan knows who the real pirates ARGH! XD

        • Herok♞

           you know making it digital only makes it easier for pirates to take though.

          • http://www.facebook.com/jefriputra Jeff

            I think both physical and digital psp game is easily pirated now, you can find the iso of game just few day after released :(

          • Hidayat246

             i think u learn so much from kaskus thread

          • Christian Wright

            maybe. but it’s cheaper than manufacturing pointless UMDs

      • Godmars

         Wada’s mysterious and blind faith in the Xbox 360 didn’t help anything.

        • Nemesis_Dawn

          It did get me to buy a 360. But it didn’t help Square Enix any.

    • Hidayat246

      Wake Up………
      KH 3 only happen after versusXIII released

      Type-0 bahh………… only happen if SE have many game released for vita so far SE line-up just for 3DS & other platform, NO LOVE VITA FOR SE THIS YEAR

      Dissidia HD???? dont hope so much

      • Nemesis_Dawn

        Actually, the Dissidia HD comes from an interview with one of the Square-Enix people (I want to say it was Nomura, but I could be wrong), where he said that they were seriously considering a PS3 version or sequel for Dissidia. Of course, this being Square-Enix, “considering” doesn’t really mean anything. Still, it was brought up and many people, myself included, would definitely pick that up if it ever were to happen.

        • Hidayat246

          dont hope so much from SE for support PS3, u know SE not so good dev game in ps3 rather than NAMCO

  • Elvick

    They don’t know what they’re doing on consoles, and it’s rubbing off on their handheld business. Which used to be unmatched in awesomeness…

    I want my Type-0 and Bravely Default.

  • Luna Kazemaru

    And the comments will turn into its because they Didn’t release x game or whatever outside Japan(oh wait it did). Like every game that comes out HAS to sorry it just doesn’t happen even with Bigger name companies. Most of them are seeing its hard to get their games out now days anyway.

  • Nemesis_Dawn

    Well, maybe if they released more than one HD title, they’d actually make some money. Sleeping Dogs was NOT the title to bet the farm on. I really don’t see why they don’t have their Japanese division work on some HD titles are not called Final Fantasy.

  • xavier axol

    all they been releasing are 3ds (not that’s a bad thing), we haven’t see tomb raider or hitman yet. they haven’t been releasing as many titles as the 3ds and just like everyone is saying “no ff type 0, no ff x hd remake, no hd remake of any of it’s franchises period” love japan but screw everyone else. i would love to see soul reaver back along with dragon quest on consoles (these franchises were popular at one point is the u.s.) square wants dragon quest to be like monster hunter (been portable only) so long as it make money right!? but will square listen to alll their fan base about the many wrong things they are doing? who knows.

  • N9ne_Galoodotcom

    Well gee, maybe if you published Type-0 instead of Theatrhythm…

    • Herok♞

      Theatrhythm is doing alot better then Type-0 ever would, keep in mind I am not talking about the quality of the games here but about the systems. The 3DS isn’t pirated nearly as much as PSP, so people who want the game have to go out and buy it, if they had released Type-0 one it would be really expensive to do unlike Theatrhytm which barely needed any translation if you think about it and two people would steal it more than buy it. One last thing is this is talking about Japan where both were released anyway. 

      • N9ne_Galoodotcom

        Piracy or not, I find it REALLY hard to believe that more people would buy Theatrhythm (Jesus, spelling that is a nightmare) than they would Type-0. We’re talking about a game with huge hype and excellent reviews behind it, pretty much the essential PSP Final Fantasy game along with Crisis Core. FF fans would eat that up.

        • http://s932.photobucket.com/ usagi_san

          Hype doesn’t mean anything at all, unless the game in question can live up to people’s expectation. Otherwise, the game would be a disappointment to some. We’ve seen many games reviewed where the sales vary in many ways from a professional’s subjective point-of-view.

          I find it hard to believe that someone would think that their opinion speaks on the behalf of others. There is no guarantee that Type-0 would’ve sold more than Theatrhythm.  

          • mark zeus lee

             like the hype for dirge of cerberus… ugh fucking bad game

          • http://s932.photobucket.com/ usagi_san

            Anything linked to VII would cause high-levels of hype.

          • N9ne_Galoodotcom

            You’re ignoring the “excellent reviews” part, which obviously means that it lives up to expectation.

            No guarantee? That’s like saying that there’s no guarantee that the new Pokemon would sell more than Rhythm Heaven Gold. They both may be good games in their own merit, but it’s clear which is a widely-expected blockbuster and which isn’t.

          • http://s932.photobucket.com/ usagi_san

            No it does not, it lived up to the reviewers’ expectations but doesn’t mean it will sale well, it gains more interest from (a) more positive review(s) though. Plus, I didn’t ignore it, there isn’t an exact correlation between excellent reviews/customer sales. If anything, a direct sequel shows how much people enjoyed the prequel to warrant continuing the series.

            Depends on what Pokémon game you are talking about e.g. main or sub series but in this context, I know you are talking about the main one. But you are still comparing an RPG to a rhythm game which is completely unfair to both. Since Pokémon would ship more and potentially sell more, whilst RHG (Rhythm Heaven Gold) would ship less and potentially sell less but would more likely have a greater sell-through than Pokémon, if it sells closer to its smaller shipment, percentage-wise.  

        • Herok♞

           if Piracy was out the question of course I would place bets on Type-0 doing better. However even if we leave out piracy and Type-0 was released today psp is a dead console so that wouldn’t really help or encourage sales because when people buy something they forward to what else they can buy if the psp library didn’t interest them before Type-0 I don’t see many people picking up a console for one game, so that leaves the established fanbase buying it and even then I don’t see it doing better then 200,000 units sold maximum.

      • Godmars

         And that’s bad.

        Not that Square is prioritizing titles based on cost factors, but that gamers are. You shouldn’t be thinking like that: thinking in terms that are good for them when it does nothing for you.  

        • Herok♞

          Well you will never understand the reasoning if you don’t think from a pov that isn’t yours, do I like the decision to not bring type-0 over no I don’t, which is why I think like this so I am not one of the people who complain and are constantly disappointed, in other words it does help me by allowing me to keep my composure

          • Godmars

            Thing is at this point their pov doesn’t involve you. At all if its to any degree. Western fans of their games have expressed vocal want of Type-0, they said they were going to bring it over, some things on the business side have changed and now – a year? Two? – after its been out in Japan they’re only faintly talking about about bring it here. Have by any real indication have moved on to other projects and all you’re really saying is that you’ll support them in any fashion. Buy games you’re not really interested in.

            I just no longer feel like supporting such a company. 

  • KiTA

    Hm?  Mention of Dragon Quest Monsters Terry’s Wonderland 3D….  Any mention of it in the US, eh, eh?

    DQM1R, DQX, DQ7R are pretty much the biggest thing on my radar for the next 2 years, so kinda hoping they drop us a line sometime.

  • Göran Isacson

    That’s kinda odd. As far as I’ve heard on sales numbers and the like, their portable games like Theaterrythm, KH:DDD and Dragon Quest X have sold as expected in all the regions they’ve been released in. Can the lack of sales success in ONE HD title really cancel out what I have presumed to be profitable sales of so many portable games?

    • http://pulse.yahoo.com/_EUSPDCE22Z6ETYY3W5XRZ2SFZU Darrel

      The cost of making PS3/360 games can be very expensive. 

    • kylehyde

      For me is more like HD games are more costly that we thought, so much that even with the help of the sale of other products the profit would not be enough, we have seen how many titles that made it to #1 in media create or NPD and i still the developer or publisher goes down.

    • ronin4life

      The only handheld game that they seemed dissapointed in that I can tell was Heroes of ruin.

  • http://twitter.com/nickjamesm7 Nick Mahan

    I know I’d buy Terry’s Wonderland if it were released in the US. I think they put to much into Sleeping Dogs. It really does seem as if the “AAA” game era will come to an end eventually, being that the development costs are becoming astronomical. What will be the costs of big next-gen HD development? If it does survive, devs will have to make sure their games are great and will sell, which is no easy task. Everyone thinks their games are great and will sell well.

  • Scirm

    (They should fix problems with logining via FB acc, I tried on both Firefox and Chrome :/)

    I think new KH is pretty solid, but we all knows what we are waiting for. Bring us Bravely Default SE!

  • http://twitter.com/Prinnylink Prinnylink

    hopefully thing will get better for them maybe…….  i doupt itthoe currenly with how there be meanies with not give us th good  fast enougth but then  agine  i know it  take  major work to  bring out so i for give

  • Budgiecat

    “sluggish sales of a Major Console title”

    Dragon Quest X obviously

    • Scirm

      Nope, they said “HD title”. And they have sold 900,000 units and we both know that most of ppl are waiting for Wii U release.

      • Budgiecat

        DQ X did not sell 900K units and it will be an HD title obviously. Plus I just don’t trust S-E these days and 1.2 million for a new IP that they didn’t even invest to develop (Sleeping Dogs) is not “sluggish”

  • Rogerrmark

    I wonder if AAA HD titles will be worth for most producers in the future,from now on.Mass Effect sold absurdly as well,and EA is on the brink of destroying Bioware ):

  • Amine Hsu Nekuchan

    Okay, now plz release Dragon Quest Monsters: Terry’s Wonderland 3D in US now.

    • Scirm

      And bunch of other games ;) There is so many good titles in Japan right now, we want ‘em!

  • http://www.facebook.com/andrew.ritter2 Andrew Ritter

    wrong group of developers working for square enix to be quite honest they havent made a truly good game since 2000 when the play station 2 first came out

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