Square Enix's HD Gaming Unit Loses $63 Million After Marvel's Avengers Launch

The new Marvel superhero video game enjoyed strong sales, but not enough to help the company turn a profit.

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Marvel's Avengers was one of Square Enix's biggest releases in years, but the game's big sales were not enough to help Square Enix's HD Games business turn a profit for the latest period.

Square Enix's HD Games business unit--which includes Marvel's Avengers, Final Fantasy VII Remake, and others--posted an estimated loss of 6.5 billion yen for the latest period, which works out to a loss of around $63 million USD. Net sales jumped significantly to 23.7 billion yen ($~230 million USD), but the cost of goods sold was more significant, leading to a loss. Square Enix also reported that it saw greater digital sales of catalog games during the period, but again, not enough to turn a profit overall.

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The HD Games business is just one of Square Enix's many categories. Overall, the company posted sales of 172 billion yen (up 43 percent) and a profit of 16 billion yen (up 46 percent) for the latest period, so the downturn in the HD Games business was not enough to impact the company's overall bottom line.

Marvel's Avengers had a rocky launch in September, but despite that, it was the best-selling game in the United States during the month. While the game had a strong start, the momentum was apparently difficult to sustain. According to Steam's public data, the game is not even in the top 100 most popular titles based on players, so its daily player count is likely only around 6,000.

Marvel's Avengers is also coming to PlayStation 5 and Xbox Series X, but those versions have been delayed to 2021. Additionally, the game's first DLC character, Kate Bishop, has been delayed.

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