Square Enix Financials Show Final Fantasy 14 Drops, Final Fantasy 16 Disappointing Sales
Square Enix reported some steep drops in its latest financial report, leading the company’s stock to take a hit on the Japanese market. Notably, the company’s MMO segment saw a 22% drop in revenue year over year.
The financial report was for the period ending June 30th. As reported by Bloomberg, Square Enix president Takashi Kiryu spoke on an earnings call and said that Final Fantasy XVI didn't meet sales expectations,speculating that PlayStation 5 adoption slowness contributed to the lower than hoped for sales. With the PlayStation 5 having become easier to obtain after massive shortages, the company does hope that greater adoption will lead to an improvement here.
Square Enix had a mixed bag of results overall. While Final Fantasy XVI did not sell fast enough to meet expectations, the company's net sales were up 14% year over year, and their Digital Entertainment net sales were also up by 16%. Digital Entertainment is divided into three segments: HD Games, Mobile/PC browser games, and MMOs.
HD Games includes Final Fantasy XVI , and the company revealed that the title sold three million copies in the first week, but the expectations were for higher sales. When it comes to mobile and PC browser games, they state an 18% decrease, especially since there was only one new launch, Dragon Quest champions.
When it comes to MMOs, this is a significant part of Square Enix’ overall picture, and there were some very significant shifts. This quarter, the MMOs made a total of 11 billion yen, which is about 77 million. This is a 22% year-over-year drop. Sales of Final Fantasy XIV were down year over year, which isn't surprising since this marked the post- Endwalker period, and also a greater return to something closer to
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