Square Enix FY2024 Q1 Results

[Puff]

• Net Sales: +14.4%
• Operating income: -78.5%
• Digital Entertainment Net Sales: +16.4%
• HD Games sub-segment sales up due to FF16 & FF Pixel Remasters but profits down partly due to amortization of development costs.
• MMO sub-segment down YoY
• Games for Smart Devices/PC Browser sub-segment down due to weak performances from existing titles.
• Publication Net Sales: -4.7%
• Amusement Net Sales: +11.3%
• Merchandising Net Sales: +28.7%

HD Games sales rose due to the release of titles including FF16 and FF Pixel Remaster. But operating income is down year on year due to development costs eating into profits.

Full report
https://www.hd.square-enix.com/eng/ir/pdf/24q1slides.pdf

 

[Deleted member 223]

I'm sure this is what Sony "wants"... (cough).

Well on the path of enlightenment to become a master hobo like Konami.

Makes you wonder who's who on this gif, Square or Phil.

 

[Box]

I'm sure this is what Sony "wants"... (cough).

Well on the path of enlightenment to become a master hobo like Konami.

Makes you wonder who's who on this gif, Square or Phil.

Konami have been making record profitd since letting Kojima go, keep coping

 

[Deleted member 223]

Konami have been making record profitd since letting Kojima go, keep coping

Correction: Since letting their whole traditional gaming division sink into oblivion and irrelevance, hence the master hobo status in gaming.

There is no "cope" kid. Pachinko machines in a gaming forum sure make for a lot of "cope". Coping is what some folk do hyping up a super mid remaster of metal gear solid: delta as if the franchise is somehow on its way back. It's a milking operation on a super dry cow.

The only thing master hobo Konami should do before the sun sets is sell their IP's to someone that can actually manage a AAA studio and ship quality titles. The only thing we have now is a great gaming legacy stuck in purgatory with a company more apt in selling gambling machines than handling creatives and multi-year project lifecycles.

 

[Deleted member 223]

Key takeaways.

Mobile is hurting deep. Only way to fix it is to cut away the abscess or a surprise hit.
Traditional is being buoyed by Sony partnerships, clearly (without it who knows where the AAA Final Fantasy releases will be right now - prob in deeper red). Dependancy on a platform holder is not healthy for a third party publisher, nor does it exude health.
MMO is dipping, expected to rebound a bit with the expansion but general trajectory will be a slow decline, aka Square will need a new milking cow MMO at some point. Nothing lasts forever, specially such an old and dated game.

 

[ethomaz]

That profit loss even posting development costs is a yeallow flag to Square Enix.
There is a big loss in revenue from mobile too.

13 years old MMO started to drop in revenue... that maybe is the reason it is finally reaching Xbox? But I don't think it will help it... after all it is a 13 years old MMO.... Square Enix needs to work in a sucessor.
In any case it was one of most sucessful MMO in the market for 13 years even with the dificult start (a lot of issues with the first version and the game have to be remade for 2.0).

Next quarter it will be interesting if the OI posted can't cover what was used to cover development costs then something is really not ok with these financials results.

 

[ChorizoPicozo]

Talking about incompetence....

 

[Vertigo]

That profit loss even posting development costs is a yeallow flag to Square Enix.
There is a big loss in revenue from mobile too.

13 years old MMO started to drop in revenue... that maybe is the reason it is finally reaching Xbox? But I don't think it will help it... after all it is a 13 years old MMO.... Square Enix needs to work in a sucessor.
In any case it was one of most sucessful MMO in the market for 13 years even with the dificult start (a lot of issues with the first version and the game have to be remade for 2.0).

Next quarter it will be interesting if the OI posted can't cover what was used to cover development costs then something is really not ok with these financials results.

FF16 is an asset flip to update Ff14. FF14 is getting ready for a relaunch. It’s coming to Xbox to in attempt to grow it further. It’s their bottom line and biggest priority no doubt.

 

[ethomaz]

FF16 is an asset flip to update Ff14. FF14 is getting ready for a relaunch. It’s coming to Xbox to grow in attempt to grow it further.

I don't think it will help imo... FFXIV on Xbox won't make any difference except maybe they will get some money from MS (I'm not saying it is a bad decision for Square Enix... upfront money is always good but I don't think it will help with the subscription revenue drop).

IMO I really believes it is time to work in a new FF MMO.
13 years is a lot of time.

 

[Vertigo]

I don't think it will help imo... FFXIV on Xbox won't make any difference except maybe they will get some money from MS (I'm not saying it is a bad decision for Square Enix... upfront money is always good but I don't think it will help with the subscription revenue drop).

IMO I really believes it is time to work in a new FF MMO.
13 years is a lot of time.

They’re relaunching. Same difference. New story and new player entry point as well as piecemeal engine updates which I’m certain why FF16 is a part of.

Essentially more platform launches are a no brainer. Even if it doesn’t take off on Xbox. BUT — I’m sure they signed some gamepass deal with “x” free months of a sub to the game.

 

[Deleted member 223]

A face uplift can go a long way. Just a matter of how substantial it's - the more substantial, the better - theory wise.

They do need to get everything else in order.

 

[Box]

Correction: Since letting their whole traditional gaming division sink into oblivion and irrelevance, hence the master hobo status in gaming.

There is no "cope" kid. Pachinko machines in a gaming forum sure make for a lot of "cope". Coping is what some folk do hyping up a super mid remaster of metal gear solid: delta as if the franchise is somehow on its way back. It's a milking operation on a super dry cow.

The only thing master hobo Konami should do before the sun sets is sell their IP's to someone that can actually manage a AAA studio and ship quality titles. The only thing we have now is a great gaming legacy stuck in purgatory with a company more apt in selling gambling machines than handling creatives and multi-year project lifecycles.

they make more profit now then ever before, companies exust to make money. Kojima wasted $200 million dollars on a bunch of songs that he didn't even end up using for Metal Gear Solid 5. With death stranding he cares more about cameos from C list celebrities then actually crafting an interesting game.

MGS2 is still Peak Kojima, his been on the decline ever since then anyways.

 

[Deleted member 223]

We're in a gaming forum. That's like saying Xbox is doing well cause Microsoft is a trillion dollar worth corp. Doesn't work that way in the context we participate here, you know that.

Your post was a quickscope snipe, it's what it's.

As for the Konami/Kojima drama, never been a fan of the merc, and never will, not even a huge fan of MGS to begin with but not a hater either. That drama and who's to blame and who's to not blame is of no big import to the overall mismanagement of Konami's traditional gaming division. Kojima wasn't Konami's traditional gaming division, just a part of it. Besides, what has happened since he left? A huge turnaround for the gaming division? Nope. It's a more profound issue than just finger pointing at an ailment here or there.

 

[Vertigo]

MGS3 is peak Kojima.

Konami has been defunct since MGSV outside of Castlevania animation. Their pachinko gambling bullshit is not notable in the gaming space.

And yes… Kojima needs a leash. He’s too obsessed with pissing away money on Hollywood talent.

 

[ethomaz]

They’re relaunching. Same difference. New story and new player entry point as well as piecemeal engine updates which I’m certain why FF16 is a part of.

Essentially more platform launches are a no brainer. Even if it doesn’t take off on Xbox. BUT — I’m sure they signed some gamepass deal with “x” free months of a sub to the game.

They are relaunching or just releasing a new big expansion? Because that needs to happes in MMO frequentelly and don't take that as relaunching.

 

[Dabaus]

I’m actually at the point that this could be true. I say this because this king David is the “hold the line” guy that Microsoft executives were tweeting about. Him and the iron lords are flown out to Microsoft shows to hang out with Phil Spencer. I wouldn’t be shocked if they give him inside info to spread it.

Yes theyre extremely toxic, but haven’t we learned thats exactly WHO Microsoft is from these court hearings? Haven’t we learned they want to spend Sony out of business? I don’t doubt for a moment Microsoft would threaten trade deals to hand pick which company would be forced to sell.

On the other Token we see Sony is just as cheap and arrogant as some of us think they are. Of course they wouldn’t make a move for a publisher, why would they? They’re too big to be ignored (for now) so just let MS buy everything and everyone up. Sony had 18 billion dollars to spend and have almost nothing to show for it.

 

[ChorizoPicozo]

t

I’m actually at the point that this could be true. I say this because this king David is the “hold the line” guy that Microsoft executives were tweeting about. Him and the iron lords are flown out to Microsoft shows to hang out with Phil Spencer. I wouldn’t be shocked if they give him inside info to spread it.

Yes theyre extremely toxic, but haven’t we learned thats exactly WHO Microsoft is from these court hearings? Haven’t we learned they want to spend Sony out of business? I don’t doubt for a moment Microsoft would threaten trade deals to hand pick which company would be forced to sell.

On the other Token we see Sony is just as cheap and arrogant as some of us think they are. Of course they wouldn’t make a move for a publisher, why would they? They’re too big to be ignored (for now) so just let MS buy everything and everyone up. Sony had 18 billion dollars to spend and have almost nothing to show for it.

these people are not worth listening to.

 

[Swift_Star]

That profit loss even posting development costs is a yeallow flag to Square Enix.
There is a big loss in revenue from mobile too.

13 years old MMO started to drop in revenue... that maybe is the reason it is finally reaching Xbox? But I don't think it will help it... after all it is a 13 years old MMO.... Square Enix needs to work in a sucessor.
In any case it was one of most sucessful MMO in the market for 13 years even with the dificult start (a lot of issues with the first version and the game have to be remade for 2.0).

Next quarter it will be interesting if the OI posted can't cover what was used to cover development costs then something is really not ok with these financials results.

XIV drop in revenue is due to no new expansion lol

 

[Nhomnhom]

Traditional games doing well, mobile and PC flopping, who would've guessed?

This is what await Sony in the future as well, mobile/GaaS/PC strategy will blow up in their faces and they'll regret not having invested more in traditional games.

SE leadership is obviously extremely incompetent, if nothing else their moronic NFT obsession gives it away.

 

[Danja]

FoamStars coming to save the day... Best believe.