Square Enix today announced its financial results for the fiscal year ended March 2024, which showed a decrease of 69.7% from the previous year's net profit of approximately 14,912 million yen. This was mainly due to the cancellation of development of some of the main components of the digital entertainment business, resulting in a special loss of 22,087 million yen.
In the fiscal year ended March 2024, sales increased by 3.8% (356,344 million yen), daily sales decreased by 26.6% (32,558 million yen) compared to the previous period, and recurring net income decreased by 24.1% (41,541 million yen) compared to the previous period.
Although the launch of titles such as "Final Fantasy 16", "Dragon Quest Monster Wonderland 3", and "Final Fantasy 7: Rebirth" brought more sales, the loss increased after adding development expenses, publicity expenses, and other costs. MMO and mobile games have brought some revenue, but they have also decreased compared to the previous period.
Square Enix also today released a new medium-term business plan (for the next 3 years). The main points are as follows:
· Previously planned targets have not been met.
· The main problem at the moment: although a lot of games have been launched, they are not very profitable. There are no popular new works in mobile games, and they are still eating the old book. Own game on the market crash.
· In the future, we plan to change our strategy from focusing on quantity to focusing on quality.
· High-list games need to stabilize and expand their fan base. The mobile game should allow people to play for a long time with peace of mind. New IP should pay attention to innovation, originality, and open up new fan groups. Strengthen its lineup with a wide range of IPs.
· High-list games should be more advanced in cross-platform strategy (Nintendo, PlayStation, Xbox, PC, etc.), and mobile games will also actively consider corresponding PC platforms in addition to iOS/Android.
· The organization was reorganized and the original business division system was abolished. The development department has been integrated into a single unit, and the marketing functions that had previously been scattered in the various business units have also been integrated. Roughly speaking, it means that development and market are split and then integrated.
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