Square Enix sales, profits plummet

A quarter with no major releases leads to decreases across the board for Deus Ex, Final Fantasy publisher; revenues fall 25 percent as net income tumbles 62 percent.

A game publisher that doesn't publish games is going to have a pretty hard time of things. Square Enix today reported its financial results for the April-June quarter, and the company blamed "a lack of major releases" as a main factor in company-wide sales and profits being down sharply.

Dungeon Siege III couldn't salvage Square Enix's low-key quarter.

For the first quarter of the publisher's fiscal year, Square Enix revenues were down 25 percent to ¥24.5 billion ($311.7 million), while net profits sank 62 percent to ¥690 million ($8.8 million). Part of the reason for the decline was a strong performance for the previous year's April-June quarter, which saw the release of the original Dragon Quest Monsters 2, which sold more than a million copies in Japan.

However, the 2011 April-June quarter wasn't entirely devoid of new games for Square Enix. In North America, the Obsidian-developed Dungeon Siege III launched on the PC, Xbox 360, and PlayStation 3. And although it technically launched the day before the quarter began, Dragon Quest Monsters 2 Joker Professional on the DS made frequent appearances on the Japanese best-seller charts throughout the April-June quarter.

Despite the dry patch, Square Enix is hoping to recover and finish this fiscal year in better shape than it did the last one. The company expects overall revenues for the year to be up 4 percent to ¥130 billion ($1.7 billion), while last year's net loss of ¥12 billion ($152.7 million) is forecast to be replaced by a profit of ¥5 billion ($63.6 million).

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183 comments
magusat999
magusat999

1,7 billion in revenues and all the profit is barely - .5 percent? Whets really going on here?You cant run a corporation on credit accounts, SE - get it together...

magusat999
magusat999

@Philly1UPer Maybe when Square makes it people will stop talking about it...

Philly1UPer
Philly1UPer

@Seifer-fx Sooo...when are you gonna change your user name and avatar?

Philly1UPer
Philly1UPer

I just hate when Square does poorly and everyone complains about how bad their games are and they want something new and fresh...but apparently the only new and fresh thing those same people think of is a remake of Final Fantasy 7.....

Thegamer16
Thegamer16

@ Double_Wide With all do respect, I think comments like yours are a big contributor to the "problem". I can assure you I don't blindly buy any games. Never have, and never will. And yet I bought, and am very much enjoying XIII. Yes I have played other RPGs, both Japanese and western. And yet, XIII is one of my favorite games. If it seems like I'm ripping on you, I'm sorry. That's Honestly not my intention. What I'm trying to say is we all have different tastes/opinions when it comes to games, or just about anything. And just because I like or buy something you don't, doesn't mean I'm blindly buying it. I think this goes for me, the Gamespot reviewer and Joe shmoe. I'm not saying there aren't fanboys out there who are going to buy every game SE releases, but automatically assuming someone who likes a game you don't is one, is unfair, and untrue. I have every respect for your opinion, Mr. VanOrd's opinion, and just about every other gamer out there. But in the end, I decide what games I like, and buy them accordingly.

zaiwen
zaiwen

Square isn't as good as it used to be

superbuuman
superbuuman

@ash162 - problem comes when you simplify too much with RPGs..dunno about you, I look forward to managing things like armour, weapons, shield etc etc..in RPG game. FF13 was too simplified...the battle system (which I like) was good, but the story (I don't know if its because of translation, I never really got the lacie this & lacie that stuff) & the rest were just plain boring.

jamyskis
jamyskis

@Evenios: I would suspect that before they release Final Fantasy XXVII, they would need to work on XV, XVI, XVII, XVIII, XIX, XX, XXI, XXII, XXIII, XXIV, XXV and XXVI first.

Double_Wide
Double_Wide

@JoePiervincenti Wait a minute...I agree with you and I think you may be misunderstanding what I'm saying. I'm not talking about all FFs but the recently released (FFXIII and FFXVI). I do think FFXIII and FFVXI has high numbers because people automatically associate Final Fantasy with quality and also hold reviews in high esteem. I'm saying instead of people relying so much on the series' laurels and reviewers, maybe they should listen to other gamers and start renting FF games first. Therefore, SE doesn't get the high profits just because a bunch of people went out and bought the game before knowing it was complete garbage. I love FF and unfortunately you're right about not being in the PSX era where we had more quality Square IPs to choose from

JoePiervincenti
JoePiervincenti

Ash, FF13 wasn't nearly as good as the rest IMO, but it wasn't because it was different... FF12 was different, but it was awesome.. none of them are the same... and Double Wide, just because you don't like them, that means other people are buying them blindly? Just because you're not crazy about the games, don't accuse other people of buying them blindly.. Most of them are very good games and we're not in the PS1 era anymore where there are dozens of quality RPG's to choose from...

Double_Wide
Double_Wide

@Alverez I agree with 95% of your comment with exception of what the problem is. The problem is is that many fans keep blindly buying the games just because the say "Final Fantasy" and the reviewers (like Gamespot) just keep giving them good reviews for the same reason!

ash162
ash162

What's with all the SE hate?? FF13 wasn't half as bad as people make out. It was just a bit different and angered the purists!! Anyway here comes Deus EX which has already received 94% from PC gamer!!

Double_Wide
Double_Wide

@coldsauce09 Capcom listening to their fans??? LMAO!!!

Double_Wide
Double_Wide

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BlackWaltz_No_3
BlackWaltz_No_3

Dear Squeenix, please make more JRPGs. What happened to the influx of JRPG's during the PSone/PS2 era? Now all I see are western games. We seem to have a lot of those already. So FFS make us some JRPGs and flood us with the line-ups we all love. I am starting to think the JRPG genre is slowly dying. Don't rely on the FF series to save your ass, you ruined that already.

daniellau2608
daniellau2608

This is just the respite before the MEGA storm.....

coldsauce09
coldsauce09

CAPCOM survived the western abomination of FPS shooter and made money cuz they listened to their fans. SE nowdays are just a bunch of stubborn peeps who makes games that they want. never listens to their fans.

righteousdpm
righteousdpm

Deus Ex and Tombraider are gonna be Golden games, i already feel it.

brotherhood666
brotherhood666

If you want sales, you should start thinking about a Kingdom Hearts release for the main new-gen consoles (PS3, X360, or even the WII)

drumma1
drumma1

We'll see how this changes when Deus Ex comes, and next year Tomb Raider. No matter how much you guys hate Square-enix, those are still huge upcoming releases, and I bet a lot of you hating will still buy those.

Seifer-fx
Seifer-fx

RIP Squaresoft, I refuse to buy a game made by Square Enix.

digitalwill2000
digitalwill2000

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Thegamer16
Thegamer16

I feel a blog post coming on....

vengefulwilberg
vengefulwilberg

As soon as Final Fantasy Versus or a remake of Final Fantasy 7 or both comes out things will quickly turn around. Tomb Raider will also help, because this Tomb Raider looks like it will be the best game Tomb Raider game ever. Tomb Raider pretty much was bad until Square Enix came along.

jubdeidamasta
jubdeidamasta

This thread is filled with people flaming over what FF is the best? What a surprise..

jubdeidamasta
jubdeidamasta

This thread is filled with people flaming over what FF is the best? What a surprise..

Albaficas
Albaficas

Thegamer16 ff13 is the worst game of the series along ff14 and ff12 just because u like it doesnt mean this game dont sucks....it sucks in all its glory....poor story,poor character (lighting cloud wannabe..wont mention vanille)the biggest linear game ever made,and wont mention the combat system...finishing the game with just the X button isnt fun....only the music was good...the rest...total crap.

Albaficas
Albaficas

at least ffversus is promising 1 because its exclusive means the full potential of a ff next ge ncan be seen, 2.nomura father of the ff is the director of it and his making the game with the advent children team + kindgom heart team.i say forget about that crappy ff13 and focus on ffversus ppl

Albaficas
Albaficas

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Albaficas
Albaficas

keep making more crappy games like ff13 (wich was a massive failure) no wonder u guyz sucks....ur last hope now is ff13versus (lets hope it stays exclu..wich it will probably) and kingdom hearts 3...u sucked hard this gen cause u think greed instead of quality...suck it long and suck it hard square enix im happy u fall like this

Eraldus
Eraldus

After screwing their great sucess (Final Fantasy), no wonder thing are goint agais them... SE, time for you to rescue what you managed to lose, the greatness that made FF series shine!

Ladiesman17
Ladiesman17

Square Enix is pathetic nowadays, they didn't have anything other than crap they called Final Fantasy zillion series, :evil: I only cares about Eidos IP(s). Hitman, Deus Ex, Tomb Raider, Freedom Fighters. etc.

SupraFighter
SupraFighter

If they remake FFIX FFVII and especially FFVII, they would be golden for years lol

DLobotomist
DLobotomist

maybe if they work on titles that people will be wanting.... Tomb Raider looks decent, Hitman Absolution needs more detail... Final Fantasy XIII-2 will help.... Final Fantasy Versus XIII and Kingdom Hearts III, anymore info on that will help boost their stock market value...

Revelstone
Revelstone

If they make more quality games Like Dues Ex: Human Revolution and stop making garbage like FF13-2 and Dungeon Siege 3, they may be alright.

SolanOcard
SolanOcard

@TerraMantis Do you know why the merged? Final Fantasy is not the be all and end all of money making franchises. Square Soft lost SO MUCH money on Final Fantasy: The Spirits Within, that they had no choice but to seek a merger, and that other company, Enix, is behind some great games too, specifically, the Dragon Warrior/Quest franchise, which I actually started playing BEFORE Final Fantasy... (I played FF1 when I was too young to understand, and did not play a FF game again until FF2/4, but had played Dragon warrior 1, 2 and 4 by that point). FF is my favourite franchise ever. But DW/DQ is up there as well.

HaloPimp978
HaloPimp978

Well Deus Ex: Human Revolution is coming out so I'm sure that stock will be going up on the 23rd.

BobbyEXE
BobbyEXE

I've been working for an international corporation now for about 2 months in engineering, and this is just what happens when good companies become too large. After Squaresoft was absorbed into Enix, a fantastic cocktail of really high dollar sauce became watered down with nice, cheap ice. And I agree, the old talent that we all know and love has either left from being denied more deserved pay or retirement. I believe the new talent has been trying some great things, but as an engineer, I can attest that all the great ideas you have will not make it past the marketing department. I'm still waiting for great things from the Squaresoft that still exists in Enix, but don't scorn the developers. Many are most likely just as frustrated as us, and want the same things. My only suggestion to us all is to continue to protest and press for the things we want from the company as customers, but to do it intelligently and politely as to be taken seriously. Bottom line we are the customers and we make the decisions, but only if enough of us give the proper feedback.

JuSs2Fr3Sh
JuSs2Fr3Sh

i always wanted a REMAKE! of FF7 but now i DONT! because i know they will SCREW! the Original which made the game so GOOD! they will screw it all up! so im glad and i think the know them selfs.. they know they will screw FF7 up to thats why they dont make it.. or els if they did they know they would get MONEY MONEY MONEY! which every body is after nowadays!

JuSs2Fr3Sh
JuSs2Fr3Sh

yes its good to explore and try new things with your franchise.. but dont MESS UP the MAIN GAMES WHICH MADE YOUR FRANCHISE!!!! start some new game or somethiing.. stick to your roots.. go ahead advance a little but never forget who you are! but in this case these money hungry people have forgotten.. all they know is MONEY MONEY MONEY!

JuSs2Fr3Sh
JuSs2Fr3Sh

long story short.. the reason for there down fall is Square-(ENIX)! This company become so rich and ended up buying companys yes.. but they forget .. it was SqureSOFT! which made the money.. not this lame ENIX! ever sens they hit Enix the only good thing to come out was crisis core and thats only because SOFT had already started the story of the game..

soulless4now
soulless4now

I'm still waiting for my Kingdom Hearts 3. Call me when you're done with Versus so I can start caring again, SE.

Koi-Neon-X
Koi-Neon-X

Final Fantasy is my favorite series, but how about Dragon Quest on the PS3? Kingdom Hearts 3?

conkerton
conkerton

My business would be on a decline if I stopped releasing good game titles. I apologize, but adding Square Enix (or Final Fantasy) to a game doesn't make it play any better. Call me when you have something with more thought and I'll gladly try again.

Evenios
Evenios

they need to get working on Final Fantasy XXVII!

TerraMantis
TerraMantis

I followed them when they were square soft and making some of the best RPG titles ever made and ever since they merged--dropping the "soft" and adding the "Enix"--they've been on a slippery slope. I went from loving/looking forward to Square releases to i haven't followed them for at least an entire decade now. Sorry Enix, but SOMETIMES sales to reflect quality of games.

godtony50
godtony50

i love FF but the new was not a FF i really don't now what it was so boring.

esfuerzo31
esfuerzo31

reap the whirlwind! that's what you get square enix for not making a remake of ff7 and remaking everyother final fantasy like II to the nth power! its called kharma ;)

pepepepepepepe
pepepepepepepe

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