Final Fantasy XIV Continues To Grow, Square Enix Sales Increase In Q1

While Outriders and Nier Replicant couldn't generate the same momentum that Final Fantasy VII Remake did last year, business is still looking good for Square Enix.


Square Enix has released the financial results for its Q1 2022, which ended on June 30, 2021, and while growth continues to be on the rise it has seen some decline in its digital entertainment segment. Overall, net sales overall were up by 1.8% to $809 million, operating income increased by 29.5% to ¥17.3 billion $158 million, and ordinary income went up by 26.9% to $160 million.

Net sales rose year-over-year across the MMO genre and for games on smart devices, subscriptions for Final Fantasy XIV: A Realm Reborn and Dragon Quest Tactics being standout titles.

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Final Fantasy XIV: A Realm Reborn's increase in subscriptions has seen the MMO section's revenue grow from $80 million two years ago to $105.8 million in this quarter. Subscriber numbers have grown this year, driven in part by World of Warcraft biggest streamer bringing attention to the game and players looking to prepare for the upcoming Endwalker expansion.

Net sales in the video game department decreased by 6% to $637 million, while operating income decreased by 34% to $156 million. This was the quarter in which Square Enix published Outriders and Nier Replicant, with both games not being expected to match the performance of Final Fantasy VII Remake from the same time last year.

It's worth noting though that Final Fantasy VII Remake's release came at the beginning of the global coronavirus pandemic when many nations instituted lockdowns that kept people inside. Combined with the legacy of Final Fantasy, marketing, and a fanbase that was invested in the IP, these elements all helped Final Fantasy VII Remake generate incredible revenue numbers for Square Enix at the time.

Outriders still reached 3.5 million unique players globally over its first month, with Square Enix adding in May that it expects the game to become its next major franchise. As for Nier Replicant, the upgraded remaster of the original 2010 game managed to sell over 1 million copies, around double that of its predecessor. These are good numbers for both games, but Final Fantasy VII Remake is a special case when compared to them.

Net sales in Square Enix's amusement sector saw a 105.4% increase to $85 million when compared to last year as COVID-19 infections had a major impact on that section. Square Enix noted that there was a sharp growth in e‐books and other digital sales, although net sales and operating income fell year-on-year.

Looking ahead to the future, the company's forecast remains the same for the current fiscal year where it expects net sales of $3.1 billion, which will be an increase of 2% year-over-year. Square Enix predicts that operating and ordinary income will total $365 million each in this period.

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