Games Industry

Earnings Square Enix fell by half, but by the end of 2018, sales increased thanks to Shadow of the Tomb Raider and Just Cause 4

The company makes optimistic forecasts for the future.

Square Enix has published a report for the current fiscal year, which began in April 2018. Over the period of nine months, almost all indicators fell – and the publisher’s income suffered the most.

Operating income fell more than doubled – by 65.3% – and amounted to 106 million dollars. The company’s profit also decreased – from $ 203.5 million to $ 81.3 million.

The smallest drop was shown in sales revenue – compared with 2017, it decreased only by 4.8%, from $ 1.71 billion to $ 1.63 billion.

Square Enix believes that a lot of reasons – low financial results were shown by all divisions of the company, including the video game. Especially noticeably reduced success in the field of mobile games and MMO.

However, the publisher noted that the situation had improved by the end of the year. In the last quarter of 2018, revenue from sales of games increased by 15% – from $ 377.3 million to $ 433.8 million. All thanks to two major releases – Shadow of the Tomb Raider and Just Cause 4, as well as the general rise in the holiday season.

At the same time Square Enix are confident that finances will show growth in the spring, when the fiscal year comes to an end. The company expects profits to decrease, but sales will be higher by 7.8% – Kingdom Hearts III will also contribute to this, shipments of which have already exceeded five million copies.

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