Square Enix, a stalwart in the gaming industry, has recently shared its financial results for the past six months, starting on April 1 and ending September 30. While the company faced a significant drop in profits, its flagship franchise, Final Fantasy, achieved a new milestone, which is especially surprising considering the stacked year we’ve had so far.
The financial report indicated a 33.4% decrease in operating income and a 42.1% decline in ordinary income. This recent downturn was attributed to a fall in net sales for MMOs, PC games, and smart devices. Notably, recent launches such as Final Fantasy VII Ever Crisis in September failed to offset weaker performances by other titles in the portfolio.
Despite these challenges, Square Enix reported a 5.3% increase in net sales, thanks in part to the release of Final Fantasy 16 and the Final Fantasy Pixel Remaster series, which brought over the first six Final Fantasy games to modern platforms with minimal changes and a handful of much-needed quality of life improvements. Both of these releases have played a massive role to the franchise’s continued success, with Final Fantasy now boasting over 185 million copies sold globally. This figure is a testament to the franchise’s enduring popularity and its ability to continually captivate audiences.
Final Fantasy 16, in particular, has been a topic of much discussion, both immediately after its critically acclaimed launch and in the weeks after. It’s arguably the best if not the most polished Final Fantasy game in years, which showed (well, maybe except for the few cases of overheating). With estimates placing its sales at approximately 4 million units, the title has performed respectably, though it hasn’t reached the upper echelons of sales expectations but not necessarily a problem it’s facing alone.
After its initial launch, the PlayStation 5 exclusive showed a decline in sales momentum, which can easily be attributed to the onslaught of high-profile titles in the weeks that followed, including Baldur’s Gate 3. Nevertheless, expectations are high for the game’s continued success, especially with an upcoming pair of DLCs and a PC version on the horizon.
The bigger concern here for Square Enix is its mobile gaming division, particularly the lackluster sales performance of its gacha titles. The need for a significant success in this area is becoming increasingly apparent, as mobile gaming continues to be a substantial revenue driver in the industry.
In the broader context, Square Enix’s approach to marketing has also come under scrutiny. Critics have pointed out that while the company has funded numerous remarkable games, the promotion of these titles has often been lacking. This issue was highlighted by the release of Little Goody Two Shoes, a game that, despite its quality, remained relatively a non-factor due to minimal marketing efforts by Square Enix. A similar scenario happened in recent years when Square Enix developer and/or published games like Marvel’s Guardians of the Galaxy, and even, Forspoken, but gave them little of the spotlight, or at least, not as much as it usually does for Final Fantasy.
Final Fantasy, as a series, has consistently demonstrated innovation and diversity in its offerings. Each installment brings a unique flavor and experience, contributing to the series’ overall success and appeal. From cultural nuances as well as exceptional soundtracks to technical mastery on various gaming platforms, Final Fantasy has solidified its status as one of the cornerstones of the gaming industry. Titles like Final Fantasy XVI, despite their flaws, continue to resonate with fans, earning high praise for their contributions to the series’ rich legacy.
As Square Enix looks to the future, there is optimism for a rebound in the next financial quarter. With the release of the next chapter in the FF7 remake trilogy, Final Fantasy 7 Rebirth, in February and the upcoming Dawntrail expansion for Final Fantasy XIV, and the potential release of several remakes, headlined by Final Fantasy 9, the company is poised for a strong performance. These releases, coupled with the enduring popularity of the Final Fantasy franchise, position it to overcome its current financial challenges and continue its legacy as a leading force in the gaming world.
