Square Enix Reports $1.6 Billion Revenue Decline Over the Last Nine Months
By The earnings for the HD video games segment surged to $30.2 million due to robust sales of Dragon Quest 3 HD-2D.
Square Enix announced its financial results for the nine months ending December 31, 2024, revealing a decrease in total sales due to “underperformance of current titles” within its mobile and PC browser categories.
The company also experienced a decline in Digital Entertainment profits, correlated with its video games sector, as new releases generated lower sales compared to Final Fantasy 16 and Dragon Quest: The Dark Prince from the previous year.
Here’s what you need to know:
The statistics:
- Total sales: ¥248.5 billion ($1.6 billion, down 3.5% year-over-year)
- Net income: ¥24.7 billion ($161.9 million, down 7.7% year-over-year)
- Digital entertainment total sales: ¥160.3 billion ($1.05 billion, down 10.7% year-over-year)
The key points:
In spite of an overall decline in total sales within its Digital Entertainment segment, Square Enix reported a remarkable 70.3% increase in operating profits for its HD video games division, amounting to ¥4.6 billion ($30.2 million) compared to the same period last year.
The company credited this growth to “lower amortization of development costs and marketing expenditures,” in addition to better-than-expected sales of Dragon Quest 3 HD-2D, which launched in November 2024.
Square Enix also witnessed a 26.4% rise in total sales for its MMO sub-segment, reaching ¥44 billion ($288.6 million) following the release of Final Fantasy 14: Dawntrail in July 2024.
Taking a look at its mobile and PC browser…