• Akira Toriyama passed away

    Let's all commemorate together his legendary work and his impact here

Square Enix Q1 FY3/2023 (April-June 2022) Financial Results

Abzeronow

Member
Disciple
Pronouns
he/him
Today (August 4,2022), Square Enix released financial results for the 3 month period that ended June 30,2022. Figures in millions of yen except percentages and share data


Net sales: 74,876 (3 mos. ended 6/22), 88,604 (3 mos. ended 6/21), YoY change -15.5%
Operating Income: 14,430 (3 mos. ended 6/22), 17,316 (3 mos. ended 6/21), YoY change -16.7%
Ordinary Income: 26,255 (3 mos. ended 6/22), 17,661 (3 mos. ended 6/21), YoY change: +48.7%
Profit Attributable to owners of parent: 18,355 (3 mos. ended 6/22), 12,655 (3 mos. ended 6/21), YoY change: +45.0%
EPS, basic: 153.45 yen (3 mos. ended 6/22), 105.98 yen (3 mos. ended 6/21)


HD Games sub-segment net sales declined from same three-month period in previous fiscal year because of decreased earnings from new titles. MMO sub-segment net sales rose versus same three-month period in previous fiscal year because of more monthly paying subscribers to Final Fantasy XIV. Smart Device/Browser Games sub-segment had a decline versus previous fiscal year although Echoes of Mana had a solid start in April, weak performances from existing titles caused a decline in net sales. Amusement segment in three-month period ended June 30, 2022 saw net sales and operating income rise compared to same period in previous fiscal year. Publication segment in three-month period ended June 30,2022 had a decline in net sales and operating income compared to same period in previous fiscal year due to year on year declines in print and digital sales. In Merchandising segment, net sales rose but operating income decreased compared to same period in previous fiscal year.

 
Last edited:
Final Fantasy XIV. The gift that keeps on giving.

350.gif
 
In foreign exchange rates, the weakness of Japanese yenc ompared to the rate as of the end of last fiscal year has resulted in the booking of a foreign exchange gain amounting to ¥13,055 million
Need to properly look at it but publisher results are so dependent on game releases.

Mobile isn't looking that great this quarter.
 



I am going to put it as Gibson mislabelling what is said as "sales" instead of "resources".

If you make this change the entire thread makes more sense.
 
Last edited:
Sounds like JV possibilities are things like Luminous Studios if they are touching Japan at all

This does not sound like outright whole company sales as some here would have hoped, and which I asserted never made much sense




Is kinda weird because i can't really think what other big EU / US studios they have left still doing "large games". Just look at the group of companies under SE below. This leave only SE Montreal (which doesn't even do games that are "big") and I don't even think SE Inc. develops anything indepedently despite its official listed role having a "development" aspect.

 
Last edited:
Sounds like JV possibilities are things like Luminous Studios if they are touching Japan at all

This does not sound like outright whole company sales as some here would have hoped, and which I asserted never made much sense




Is kinda weird because i can't really think what other big EU / US studios they have left still doing "large games". Just look at the group of companies under SE below. This leave only SE Montreal (which doesn't even do games that are "big") and I don't even think SE Inc. develops anything indepedently despite its official listed role having a "development" aspect.



Square Enix Montreal is part of the sale to Embracer.

The remaining west stuff is basically publishing deals as far as I can tell. The publishing arm that manages things like Life is Strange and Outriders.
 
Square Enix Montreal is part of the sale to Embracer.

The remaining west stuff is basically publishing deals as far as I can tell. The publishing arm that manages things like Life is Strange and Outriders.

If so, I am not sure where the JV potential is for Western studios since SE barely had anything.

To me the obviously people who will be targeted, if they are touching Japan are

-Tokyo RPG factory (not profitable for a long time)
-Luninious Studios (Forspoken don't look like it will sell)

They might spin some other internal studios off for Joint Venture or Equity type deals, but this requires investment to make it a distinct entity with its own coproate support structure (legal, account etc). This sounds really unlikely imo.

Dare I say that there will be funny discussions here if Project Armor is spun off (it's is possible but improbable).
 
Last edited:
SE are complaining about rising development costs but a majority of the time, their premier JP AAA games ignore 1+ major gaming platforms with each release and/or take money hat deals.

You can't make this up. They are their own worst enemy.
 
SE are complaining about rising development costs but a majority of the time, their premier JP AAA games ignore 1+ major gaming platforms with each release and/or take money hat deals.

You can't make this up. They are their own worst enemy.
Agreed, Jp AAA multiplaform with Stadia and Luna.
 
Sounds like JV possibilities are things like Luminous Studios if they are touching Japan at all

This does not sound like outright whole company sales as some here would have hoped, and which I asserted never made much sense




Is kinda weird because i can't really think what other big EU / US studios they have left still doing "large games". Just look at the group of companies under SE below. This leave only SE Montreal (which doesn't even do games that are "big") and I don't even think SE Inc. develops anything indepedently despite its official listed role having a "development" aspect.


The JV will likely be new studios in the west. It very much reads they don’t want to wholly own the costs of western studios, but they want to expand their studio portfolio and grow western IP (I’d imagine both existing like Life is strange and Just Cause and new)
 
Maybe it's just me but I feel like there's been a bunch of misreporting/misinterpretations of Square Enix's recent business decisions, such as why they sold Eidos Montreal and Crystal Dynamics, then the comment about selling stake in its western studios (which they don't really have much left anyway?) being reported as them wanting to sell the entire company, and now the explicit comment on how EM+CD were cannibalizing capital investment and opportunity costs. All three instances have been pretty difficult to read about because there's so much game of telephone going on and misrepresentation of what's otherwise legitimate business decisions.

I wonder if the HD games segment will do better with all the AA games they're releasing this next quarter (and then Forspoken the subsequent quarter).
 
They could also be looking at doing what Bandai Namco and ILCA have done recently and establishing separate entities for their long running development partners where both companies hold a stake?
 
The JV will likely be new studios in the west. It very much reads they don’t want to wholly own the costs of western studios, but they want to expand their studio portfolio and grow western IP (I’d imagine both existing like Life is strange and Just Cause and new)

It would make sense but Gibson said the below. When taken together it means existing studios and not some new venture.



Maybe it's just me but I feel like there's been a bunch of misreporting/misinterpretations of Square Enix's recent business decisions, such as why they sold Eidos Montreal and Crystal Dynamics, then the comment about selling stake in its western studios (which they don't really have much left anyway?) being reported as them wanting to sell the entire company, and now the explicit comment on how EM+CD were cannibalizing capital investment and opportunity costs. All three instances have been pretty difficult to read about because there's so much game of telephone going on and misrepresentation of what's otherwise legitimate business decisions.

I wonder if the HD games segment will do better with all the AA games they're releasing this next quarter (and then Forspoken the subsequent quarter).

To me, there is no surprise why they want to get rid of CD/E and even the low price tag don't surprise me.

These studios have been expensive to run, because they are based in USA/Canada where wages are much higher than Japan, and they haven't been able to come up with any major success in the decade under SE. SE is pivoting to what it thinks is its strengths (Japan made products).

The only confusion here is Gibson saying Phase 2 having more western companies to be impacted when SE doesn't have many western companies left after CD/E is gotten rid of.
 
Last edited:
Back
Top Bottom