×
You will be redirected back to your article in seconds

Square Enix Announces Financial Decline Despite ‘Tomb Raider’ and ‘Just Cause’ Sales

Despite the launch of new titles in the “Tomb Raider” and “Just Cause” franchises in 2018, Square Enix experienced declines across the board, according to the publisher’s latest financial results released on Wednesday.

“New titles such as “Shadow of the Tomb Raider” and ”Just Cause 4” bolstered sales YoY,” says Square Enix in slides from its financial results. “but profits declined YoY due to increased amortization of game development cost, advertising spending.”

The company announced that net sales for its digital entertainment sector actually rose year-on-year for the quarter running from October to December 2018. This was aided by the launch of “Just Cause 4” which was released at the start of December, and ongoing sales for “Shadow of the Tomb Raider,” which released in September, as well as a general boost in sales over Christmas.

As such, Net sales was hit the softest, with a 4.8 percent decline year-on-year. In 2018, Square Enix saw net sales of $1.63 billion for the nine months ending December 31, compared to the $1.71 billion achieved during the same period in 2017.

But operating income and ordinary income were impacted more heavily. Operating income was down a whopping 65.3 percent year-on-year to $106 million, while ordinary income fell 54.1 percent to $145.5 million.

And in its Digital Entertainment sector, Square Enix experienced another drop in net sales for the nine month period, falling from 9.1 percent to $1.19 billion, while operating income fell by 59.3 percent to $134.9 million.

“Many FY2018/3 titles underperformed, failing to add sales on top of established titles,” reads a statement from Square Enix. “Less licensing income, greater advertising spend also caused YoY sales and profit declines.”

The company now plans to focus on “selected titles and releasing titles utilizing existing IPs” as well as to rebuild its “development and operation organizations” and “strive to create new hit titles.”

The publisher says it expects net sales for the full financial year to be up by 7.8 percent over the previous year, reaching $2.46 billion. However, profits are expected to decline, with Square Enix forecasting $191.3 million, which is 18.7 percent down year-on-year.

Square Enix is also hoping to experience a boost from the release of “Kingdom Hearts 3” which has so far shipped five million copies across physical shipments and digital sales.

More Gaming

  • harry potter wizards unite

    'Harry Potter: Wizards Unite' Off to Slower Start Than 'Pokemon Go'

    Niantic’s new location-based augmented reality game “Harry Potter: Wizards Unite” is off to a solid start — but it doesn’t seem to have quite the same momentum as “Pokemon Go” did when it launched 3 years ago. That’s according to initial estimates from app analytics specialist Sensor Tower. “Harry Potter: Wizards Unite” first became available [...]

  • survios at the linq

    Not Just Gambling: Las Vegas Is Becoming a Virtual Reality Hub

    Walk into the Linq on the Las Vegas strip these days, and you might not immediately realize you just stepped into a casino. Instead, you’ll stumble across a series of living-room-like lounge setups, complete with leather couches, big-screen TVs, Xbox Ones and Oculus Go VR headsets. There’s also a bar with a massive wrap-around touch [...]

  • Netflix HQ LA

    Netflix Engineers Developed a Rumble Pack Feature During Latest Hack Day

    A duo of Netflix employees had a unique idea for making the service’s shows even more stirring: They added a rumble pack option to the Netflix app as part of the company’s latest hack day. When watching shows like “Voltron,” the feature makes phones vibrate in sync with the action on the screen, similar to [...]

  • Niantic's Harry Potter: Wizards Unite Game

    ‘Harry Potter: Wizards Unite’ to Launch This Week

    “Pokemon Go” maker Niantic is getting ready to launch its next big game: “Harry Potter: Wizards Unite” is set to launch in June 21, the company revealed in a tweet this week. The worldwide launch of Harry Potter: Wizards Unite begins this Friday, June 21! Keep your eyes peeled and wand ready for more information [...]

  • Sarah Iooss - Twitch

    Twitch Hires Sarah Iooss, Former Mic and Viacom Exec, as Head of North America Sales

    Twitch has tapped Sarah Iooss, most recently EVP of revenue at millennial-news startup Mic, to lead the advertising sales team in North America for the Amazon-owned live-streaming video platform focused on video gaming. Iooss will be based in New York, reporting to chief revenue officer Walker Jacobs, who joined Twitch last fall after serving as [...]

  • littlstar ps4 app

    Littlstar Expands Beyond VR With New PS4 App, Signs Up 30,000 Paying Subscribers (EXCLUSIVE)

    A&E-backed immersive content aggregator Littlstar is expanding beyond virtual reality (VR): The New York-based startup launched a dedicated PlayStation4 app this week, giving users of Sony’s game console access to their personal media libraries, as well as both traditional and 360-degree video content from a variety of publishers. Littlstar also announced that it signed up [...]

  • Game of Thrones Season 8 Production

    'Game of Thrones,' Netflix VFX Among Those to Be Featured in SIGGRAPH Production Talks

    VFX pros behind the final season of “Game of Thrones,” the blockbuster film “Avengers: Endgame,” Pixar’s upcoming “Toy Story 4,” last year’s Oscar-winning “Spider-Man: Into the Spider-Verse,” Netflix series, including “Stranger Things,” and more will give SIGGRAPH 2019 attendees a behind-the-scenes look at their work during the conference’s Production Sessions. There will even be a [...]

More From Our Brands

Access exclusive content