Square Enix shared the financial results for the nine-month period of the fiscal year ending in March 31, 2019, highlighted by titles such as Octopath Traveler, Shadow of the Tomb Raider, and Just Cause 4.
The above is a look at the statement of income. It shows various sales and income figures comparing the performance of the nine-month period of April to December 2018 to the same period last year.
More details are available by business segment. “Digital Entertainment” includes all console, PC, and smart device gaming. Sales from arcade games are part of the“Amusement” segment.
Here we got a closer look at the quarterly performance of the current fiscal year to the previous one. Net sales saw an overall rise in the third quarter compared to the same period last year, but operating income dropped due to “greater amortization of development costs for major new titles and increased advertising expenses.
Shadow of the Tomb Raider and Just Cause 4 bolstered sales in the third quarter of FY2019, but as you can see, the operating income took a drop. Keep in mind that Kingdom Hearts III released in the fourth quarter, so its sales will be recognized in the next quarterly report.
As for MMO titles, both net sales and operating income declined compared to the previous fiscal year when Final Fantasy XIV and Dragon Quest X released its expansions. Square Enix expects to see these numbers rise for the next fiscal year when the Final Fantasy XIV: Shadowbringers expansion releases on July 2, 2019.
The third quarter of FY2019 saw a rise in software units sold (physical and digital) in North America and Europe, which can be attributed to sales from Shadow of the Tomb Raider and Just Cause 4 that sell better in the West than they do in Japan and Asia. Japan in particular saw a sharp decline in units sold.
Smart devices and PC browser games haven’t been too hot for Square Enix. The company says many of its titles released in the previous fiscal year have underperformed and failed to add sales on top of established titles. Less licensing income and greater advertising spend caused year-over-year and profit declines.
Lastly, Square Enix saw a rise in net sales for arcade games thanks to the release of new games such as Stawring Paradox and Love Live! School Idol Festival ~After School Activity~ Next Stage.