Multiplayer online games

Square Enix revises its operating profit forecast to hit a new corporate record, thanks to Final Fantasy XIV

Square Enix Reports Financial Results for the Third Quarter Fiscal Year Ended March 31, 2022 [PDF]in which the publisher highlights sales and revenue figures for the first three quarters of the current fiscal year.

In the results, the company notes that despite the publications of Riders, NieR Replicant ver.1.22474487139…and Marvel’s Guardians of the Galaxynet sales of the HD Games sub-segment decreased compared to the same period last year, which had seen Final Fantasy VII Remake and Marvel’s Avengers. However, in the MMO (Massively Multiplayer Online) games sub-segment, sales were up year-on-year, driven by Final Fantasy XIVof the paid subscriber base of and the release of the Endwalker expansion. This leads to an overall year-over-year increase in net sales and operating profit for the digital entertainment segment.

Perhaps most notably, Square Enix raised its operating profit guidance, largely due to the success of Final Fantasy XIVas well as merchandise sales. [PDF] The publisher now expects operating profit of 50 billion yen, against a previous forecast of 40 billion yen. It would be the highest operating profit for the company, breaking last year’s record of 47.2 billion yen. Net sales are still expected to be 340 billion yen, which would also be a record for the company.

Square Enix’s statement on its revised forecast can be found below. More information can be found at Square Enix IR Page.

The Company now expects higher-than-expected operating income in its consolidated financial guidance for the fiscal year to March 31, 2022. Among the factors contributing to this revision are substantial growth in the number of paying subscribers for “Final Fantasy XIV” and rapid expansion. sales of packs in the MMO (Massively Multiplayer Online) games sub-segment, as well as sales of character products based on the Company’s own content exceeding its initial expectations in the Merchandising segment. The Company also expects higher ordinary income and profits attributable to owners of the parent company than it had previously anticipated, in part because the yen has been weaker than the Company had originally assumed. Finally, the Company’s outlook has been updated to reflect the spread of COVID-19, exchange rate fluctuations, competitive environment, etc.

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