Square Enix sales drop year-on-year, despite release of Final Fantasy 7 Rebirth

Sales of Square Enix games have dropped compared to last year, despite the high profile release of Final Fantasy 7 Rebirth.

According to its latest earnings report, the company’s overall net sales dropped by 18.4 percent year-on-year for the most recent quarter.

This is driven in part due to a decline in sales of new games. By comparison, the same quarter in 2023 saw the release of Final Fantasy 16 and the Final Fantasy Pixel Remasters.

However, the company has still turned a profit with its games this year on lower development cost amortization and advertising expenses.

What’s more, its MMO sub-segment saw a rise in sales and profits compared to last year. This latest quarter does not include the July release of Final Fantasy 14 expansion Dawntrail, although clearly interest has risen ahead of its release. Expect a considerable increase to profits in the next quarterly results.

Mobile games, meanwhile, have also seen sales decline “due to weak sales of existing titles”, presumably including last year’s release of free-to-play gacha game Final Fantasy 7 Ever Crisis. However, profits have increased due to “optimization of operational expenses.”

Overall, Square Enix is ​​”continuing determined efforts to strengthen the competitiveness and profitability” of its business.

At the start of the year, company president Takashi Kiryu announced a review of the company’s development system, to increase quality and profits.

As part of this, the company abandoned £112m of in-development projects that resulted in a loss for the previous financial year. It’s now “aggressively pursuing” a multiplatform strategy.

It’s clear, then, Square Enix is ​​in a reset phase and its restructuring has resulted in a profit despite disappointing sales of its existing games.

The company also laid off staff in its US and European offices as part of “structural reforms”.

Sales of Final Fantasy 7 Rebirth were not specifically included in this financial report, although previously it was reported sales were “underperforming.”

The third and final part of that trilogy is yet to be fully revealed or a release window provided, but director Naoki Hamaguchi has confirmed the popular card game Queen’s Blood will make a “revamped” return.