Mobile sales slump hits Square Enix profits

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Square Enix sales declined by 3.5% year-over-year to ¥248.5 billion ($1.6bn) during the nine months ending December 31st, 2024.

Operating income fell to ¥33.4bn ($220.2 million), down 4.4% year-on-year. Notably, however, this fall marked a slowdown compared to Square Enix’s 15.5% operating income decline during the same period in the last fiscal year.

Profits for the nine months, meanwhile, fell by 7.7% Y/Y to ¥24.7bn ($162.4m).

Room to improve

Net sales of its digital entertainment segment – which encompasses games for console, PC, browser and mobile – declined by 10.7% year-on-year to ¥160.4bn ($1.1bn). For smart devices and PC browser specifically, sales fell by 27.8% to ¥56.3bn ($370.3m).

The company noted a fall in net sales and profits from mobile and PC browser games specifically, “despite” the launch of new mobile IP Emberstoria in Japan.

Square Enix also ended service of Final Fantasy: Brave Exvius nearly nine years after the title first launched, amongst other titles it has canned.

The company attributed mobile and PC browser games’ decline to “weakness in existing titles” and “the recognition of royalty revenue in the previous fiscal year”.

Square Enix’s HD games sub-segment also declined, attributed to weaker releases compared to Final Fantasy XVI, Final Fantasy Pixel Remaster and Dragon Quest Monsters: The Dark Prince one year prior.

The only form of Square’s digital entertainment to grow was its MMO activity. Here, net sales and operating income both rose year-on-year, attributed to the latest expansion pack to Final Fantasy XIV, Dawntrail.

To capitalise on the game’s performance, a mobile adaptation of Final Fantasy XIV is currently in the works.

Finally, net sales for Square Enix’s merchandise rose year-on-year, up 19.2% to ¥14.8bn ($97.3m).

Looking forward

For the full fiscal year ending March 31st, 2025, Square Enix has predicted its total net sales across segments to be ¥310bn ($2bn), while operating income is forecast to reach ¥40bn ($263.8m). These figures would represent a year-on-year decline of 13% and an increase of 22.9%, respectively.

Entering the final quarter of its current fiscal year, Square Enix has released the 2020 remake of Trials of Mana on Apple Arcade.