Square-Enix Reports "Record-High" Earnings

Square-Enix surprised gamers with the announcement that the company will part ways with Hitman developers, IO Interactive, but the company also posted strong profits thanks in large part to console and mobile video game sales.

In a report published today by Square-Enix, the Japanese video game company revealed that, "For this fiscal year, the Company reported record-high net sales, operating income, ordinary income and profit attributable to owners of parent, respectively." These sales translated to a 20 percent increase in net sales, 20.3 percent jump in operating income, and 22.9 percent increase in ordinary income.

This large jump in profit is primarily attributed to "blockbuster series titles such as "FINAL FANTASY XV" and the [PlayStation 4] version of "RISE OF THE TOMB RAIDER," on top of strong download sales of previously released catalogue titles[.]" Square-Enix said in the statement.

In addition, strong mobile sales for smartphone games such as Final Fantasy Brave Exvius and Dragon Quest Monsters Super Light have prompted the company to focus on expanding more mobile titles to overseas and emerging markets. Presumably in an effort to recreate the strong domestic sales of mobile games in Japan.

The company also revealed that MMORPG revenue from Final Fantasy XIV and Dragon Quest X have slowed due to a lack of expansion discs released in the previous fiscal year, but expect Final Fantasy XIV Stormblood to "enhance paying user base, and expand sales of expansion discs."

Despite record earnings in the fiscal year, Square-Enix predicts conservative growth in the 2018 FY, with forecasts showing either a slowdown, or marginal bump ins ales. The company ended their presentation with a plan to focus on broader multi-platform support across both consoles as well as smartphones and browsers, geographical expansion, as well as a games as service, games as media plan. The latter plan is detailed as adding titles that generate recurring revenues on top of single purchases (presumably DLC), and "develop game streaming services mainly in the arcade space."