• Akira Toriyama passed away

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

Square Enix Q2 FY3/2024 Financial Results (July - September 2023) | Net sales up by 5,3% and ordinary income down by 42,1% over Apr - Sept 2022

MarcoP90

Moderator
Pronouns
He/Him

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Consolidated business results

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The Square Enix group (the “Group”) is continuing determined efforts to strengthen the competitiveness and profitability of its business segments of Digital Entertainment, Amusement, Publication and Merchandising.
Net sales for the six-month period ended September 30, 2023 totaled ¥172,046 million (an increase of 5.3% from the same period of the prior fiscal year), and operating income amounted to ¥17,337 million (a decrease of 33.4% from the same period of the prior fiscal year). In foreign exchange rates, the weakness of Japanese yen compared to rates as of the end of the prior fiscal year resulted in the booking of a foreign exchange gain amounting to ¥7,803 million. As a result, ordinary income amounted to ¥26,124 million (a decrease of 42.1% from the same period of the prior fiscal year), and profit attributable to owners of parent amounted to ¥16,623 million (a decrease of 57.9% from the same period of the prior fiscal year).

Digital entertainment

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The Digital Entertainment segment consists of planning, development, distribution, and operation of digital entertainment content primarily in the form of game. Digital entertainment content is offered to meet customer lifestyles across a variety of usage environments such as consumer game consoles (including handheld game machines), personal computers and smart devices.
At the HD (High-Definition) Game sub-segment, net sales for the six-month period ended September 30, 2023 rose compared to the same period of the previous fiscal year due to the release of titles including “FINAL FANTASY XVI” AND “FINAL FANTASY PIXEL REMASTER.” In the MMO (Massively Multiplayer Online) Game sub-segment, net sales fell compared to the same period of the previous year. In the Games for Smart Devices/PC Browser sub-segment, net sales declined compared to the same period of the previous fiscal year as the June launch of “Dragon Quest Champions” and the September launch of “FINAL FANTASY VII EVER CRISIS” were unable to compensate for factors including weak performances by existing titles.

Net sales and operating income in the Digital Entertainment segment totaled ¥122,046 million (an increase of 4.2% from the same period of the prior fiscal year), and ¥15,520 million (a decrease of 36.9% from the same period of the prior fiscal year), respectively.

Results briefing session for H1 FY3/2024 - https://www.hd.square-enix.com/eng/ir/pdf/24q2slides.pdf

FY3/2024

Q1 - https://www.installbaseforum.com/fo...inancial-results-net-sales-14-4-oi-78-5.1850/
 
I think they need to perfectly nail the next Nier and DQXII both in terms of

- overall quality
- platform choices
- release window
 
The following tables come from my webpage: https://r134x7.github.io/nintendo-earnings-data-and-other-video-game-companies/#/square-enix

Consolidated Earnings:
Code:
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| SQUARE ENIX HOLDINGS CO., LTD. | FY3/2024 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Consolidated Financial Results            |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Sales                  |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥85,669M |   +14.41% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥86,377M |    -2.42% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥172,046M |     +5.3% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|    ¥360,000M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income           |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |      ¥3,097M |   -78.54% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥14,240M |   +22.61% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥17,337M |   -33.43% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥55,000M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Margin           |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |        3.62% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |       16.49% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |       10.08% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|       15.28% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                 |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |      ¥6,300M |   -65.68% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥10,323M |   -51.12% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥16,623M |   -57.89% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥38,500M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###

Sales per software unit:
Code:
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| SQUARE ENIX HOLDINGS CO., LTD. | FY3/2024 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales      |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| HD Games                                         |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|             |             |          | Sales Per |
|             |             | Software |  Software |
|             |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |    ¥28,900M |
|        YoY% |    +140.83% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |    ¥14,800M |
|        YoY% |     -14.94% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥43,700M |
|        YoY% |     +48.64% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| *Sales might include: - Downloadable content     |
| purchases                                        |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| MMO                                              |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|             |             |          | Sales Per |
|             |             | Software |  Software |
|             |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |    ¥11,000M |
|        YoY% |     -21.99% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |    ¥12,900M |
|        YoY% |     -11.03% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥23,900M |
|        YoY% |     -16.43% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| **MMO sales includes subscriptions               |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| HD Games & MMO                                   |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|             |             |          | Sales Per |
|             |             | Software |  Software |
|             |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |    ¥39,900M |    7.54M |    ¥5,292 |
|        YoY% |     +52.87% |  +76.17% |   -13.22% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |    ¥27,700M |    4.63M |    ¥5,983 |
|        YoY% |     -13.17% |   -9.75% |    -3.78% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥67,600M |   12.17M |    ¥5,555 |
|        YoY% |     +16.55% |  +29.33% |    -9.88% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| *Sales might include: - Downloadable content     |
| purchases                                        |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###

SPECIAL PAGE DATA

Consolidated Earnings 2nd Quarters:
Code:
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| SQUARE ENIX HOLDINGS CO., LTD. |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Consolidated Financial Results  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Sales                          |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2004 2nd Quarter |    ¥11,568M |
| FY3/2005 2nd Quarter |    ¥12,353M |
| FY3/2006 2nd Quarter |    ¥15,813M |
| FY3/2007 2nd Quarter |    ¥38,763M |
| FY3/2008 2nd Quarter |    ¥38,522M |
| FY3/2009 2nd Quarter |    ¥38,204M |
| FY3/2010 2nd Quarter |    ¥61,162M |
| FY3/2011 2nd Quarter |    ¥35,516M |
| FY3/2012 2nd Quarter |    ¥32,987M |
| FY3/2013 2nd Quarter |    ¥36,141M |
| FY3/2014 2nd Quarter |    ¥37,581M |
| FY3/2015 2nd Quarter |    ¥35,376M |
| FY3/2016 2nd Quarter |    ¥44,078M |
| FY3/2017 2nd Quarter |    ¥55,154M |
| FY3/2018 2nd Quarter |    ¥75,043M |
| FY3/2019 2nd Quarter |    ¥66,764M |
| FY3/2020 2nd Quarter |    ¥67,433M |
| FY3/2021 2nd Quarter |    ¥85,677M |
| FY3/2022 2nd Quarter |    ¥80,313M |
| FY3/2023 2nd Quarter |    ¥88,516M |
| FY3/2024 2nd Quarter |    ¥86,377M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             21 |
| Sum               |    ¥1,043,341M |
| Average           |       ¥49,683M |
| Median            |       ¥38,763M |
| Minimum           |       ¥11,568M |
| Maximum           |       ¥88,516M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income                   |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2004 2nd Quarter |     ¥1,669M |
| FY3/2005 2nd Quarter |     ¥2,442M |
| FY3/2006 2nd Quarter |     ¥2,112M |
| FY3/2007 2nd Quarter |     ¥6,452M |
| FY3/2008 2nd Quarter |     ¥5,417M |
| FY3/2009 2nd Quarter |     ¥5,933M |
| FY3/2010 2nd Quarter |    ¥12,497M |
| FY3/2011 2nd Quarter |       ¥278M |
| FY3/2012 2nd Quarter |     ¥5,213M |
| FY3/2013 2nd Quarter |    ¥-4,077M |
| FY3/2014 2nd Quarter |     ¥3,986M |
| FY3/2015 2nd Quarter |     ¥3,439M |
| FY3/2016 2nd Quarter |     ¥4,671M |
| FY3/2017 2nd Quarter |     ¥2,166M |
| FY3/2018 2nd Quarter |    ¥12,942M |
| FY3/2019 2nd Quarter |     ¥5,819M |
| FY3/2020 2nd Quarter |     ¥8,729M |
| FY3/2021 2nd Quarter |     ¥7,106M |
| FY3/2022 2nd Quarter |    ¥11,830M |
| FY3/2023 2nd Quarter |    ¥11,614M |
| FY3/2024 2nd Quarter |    ¥14,240M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             21 |
| Sum               |      ¥124,478M |
| Average           |        ¥5,928M |
| Median            |        ¥5,417M |
| Minimum           |       ¥-4,077M |
| Maximum           |       ¥14,240M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                         |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2004 2nd Quarter |     ¥1,042M |
| FY3/2005 2nd Quarter |     ¥1,299M |
| FY3/2006 2nd Quarter |     ¥2,149M |
| FY3/2007 2nd Quarter |     ¥2,431M |
| FY3/2008 2nd Quarter |     ¥1,658M |
| FY3/2009 2nd Quarter |     ¥3,171M |
| FY3/2010 2nd Quarter |     ¥4,355M |
| FY3/2011 2nd Quarter |       ¥-89M |
| FY3/2012 2nd Quarter |     ¥3,014M |
| FY3/2013 2nd Quarter |    ¥-3,403M |
| FY3/2014 2nd Quarter |     ¥3,099M |
| FY3/2015 2nd Quarter |     ¥2,294M |
| FY3/2016 2nd Quarter |     ¥1,325M |
| FY3/2017 2nd Quarter |       ¥159M |
| FY3/2018 2nd Quarter |     ¥9,147M |
| FY3/2019 2nd Quarter |     ¥2,770M |
| FY3/2020 2nd Quarter |     ¥6,847M |
| FY3/2021 2nd Quarter |     ¥1,675M |
| FY3/2022 2nd Quarter |    ¥10,336M |
| FY3/2023 2nd Quarter |    ¥21,118M |
| FY3/2024 2nd Quarter |    ¥10,323M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             21 |
| Sum               |       ¥84,720M |
| Average           |        ¥4,034M |
| Median            |        ¥2,431M |
| Minimum           |       ¥-3,403M |
| Maximum           |       ¥21,118M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

Sales Per Software Unit 2nd Quarters:
Code:
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| SQUARE ENIX HOLDINGS CO., LTD.        |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| HD Games                                                  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|                      |             |          | Sales Per |
|                      |             | Software |  Software |
|                      |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2020 2nd Quarter |    ¥10,800M |
| FY3/2021 2nd Quarter |    ¥23,700M |
| FY3/2022 2nd Quarter |    ¥14,400M |
| FY3/2023 2nd Quarter |    ¥17,400M |
| FY3/2024 2nd Quarter |    ¥14,800M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count                |           5 |
| Sum                  |    ¥81,100M |
| Average              |    ¥16,220M |
| Median               |    ¥14,800M |
| Minimum              |    ¥10,800M |
| Maximum              |    ¥23,700M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| *Sales might include: - Downloadable content         |
| purchases                                            |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| MMO                                                       |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|                      |             |          | Sales Per |
|                      |             | Software |  Software |
|                      |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2020 2nd Quarter |    ¥13,600M |
| FY3/2021 2nd Quarter |    ¥10,800M |
| FY3/2022 2nd Quarter |    ¥16,100M |
| FY3/2023 2nd Quarter |    ¥14,500M |
| FY3/2024 2nd Quarter |    ¥12,900M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count                |           5 |
| Sum                  |    ¥67,900M |
| Average              |    ¥13,580M |
| Median               |    ¥13,600M |
| Minimum              |    ¥10,800M |
| Maximum              |    ¥16,100M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| **MMO sales includes subscriptions                   |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| HD Games & MMO                                            |
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| FY3/2020 2nd Quarter |    ¥24,400M |     5.4M |    ¥4,519 |
| FY3/2021 2nd Quarter |    ¥34,500M |    5.87M |    ¥5,877 |
| FY3/2022 2nd Quarter |    ¥30,500M |    7.34M |    ¥4,155 |
| FY3/2023 2nd Quarter |    ¥31,900M |    5.13M |    ¥6,218 |
| FY3/2024 2nd Quarter |    ¥27,700M |    4.63M |    ¥5,983 |
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| Count                |           5 |        5 |         5 |
| Sum                  |   ¥149,000M |   28.37M |   ¥26,752 |
| Average              |    ¥29,800M |    5.67M |    ¥5,350 |
| Median               |    ¥30,500M |     5.4M |    ¥5,877 |
| Minimum              |    ¥24,400M |    4.63M |    ¥4,155 |
| Maximum              |    ¥34,500M |    7.34M |    ¥6,218 |
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| From Outline of Results Briefing held    |
| on May 13, 2021 (for FY3/2021):          |
| We have also made a change to how we     |
| disclose our units sold. Whereas the     |
| download sales we disclosed previously   |
| only included titles launched in the     |
| past two years, we now include all sales |
| made during the relevant fiscal year,    |
| regardless of when a title may have been |
| released.                                |
|                                          |
| This change was prompted primarily by    |
| the fact that we are making many more    |
| sales from our back catalog than we had  |
| in the past.                             |
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The fact they didn't share any sales update for Final Fantasy XVI is a bit worrying considering the fact that Final Fantasy is usually pretty frontloaded and legs were terrible all around. Not a good outlook for the franchise.
 
SE's main problem is profitability. Everything else is fine.

The fact they didn't share any sales update for Final Fantasy XVI is a bit worrying considering the fact that Final Fantasy is usually pretty frontloaded and legs were terrible all around. Not a good outlook for the franchise.

Not really. When SE releases sales milestone is completely arbitrary.

We had the same thing for FF7R, were several people were for sure the game was still near 5M due to no new sales update, and then few weeks later SE confirmed 7M.
 
Not really. When SE releases sales milestone is completely arbitrary.

We had the same thing for FF7R, were several people were for sure the game was still near 5M due to no new sales update, and then few weeks later SE confirmed 7M.

In fact, Final Fantasy VII Remake got two meaningful updates: launch sales (3.5m) and not much after when it achieved 5m units. 7m units came more recently after portings and discounts.

Final Fantasy XVI was basically Square Enix's most important release since VII Remake so I'd say the company could have some incentives to update sales numbers more frequently as they did with Final Fantasy XV, if results were indeed good.

Rankings all around the world showed that the game had terrible legs.
 
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SE's main problem is profitability. Everything else is fine.



Not really. When SE releases sales milestone is completely arbitrary.

We had the same thing for FF7R, were several people were for sure the game was still near 5M due to no new sales update, and then few weeks later SE confirmed 7M.

Few weeks? Felt more like few years. I think everyone thought 6-6.5mil that whole time not 5mil. Maybe 2 or 3 people thought that but the general consensus was 6mil+
 
Few weeks? Felt more like few years. I think everyone thought 6-6.5mil that whole time not 5mil. Maybe 2 or 3 people thought that but the general consensus was 6mil+

No, there was a very recent PR that had it at 5M, several here thought that was still the current LTD, while others were pointing out it just referred to the years old PR, as it made little sense for the game to still be near 5M years later.
 
that is a really low number for packaged software this fy so far. ffxv must have a really high digital ratio, bc even assuming that it is the majority of those sales, that’s still not much retail presence at all
 
that is a really low number for packaged software this fy so far. ffxv must have a really high digital ratio, bc even assuming that it is the majority of those sales, that’s still not much retail presence at all
Do you mean 16? Probably, I believe all the copies they sold to Sony to bundle with PS5s were digital. I think a lot of the sales they contributed to this quarter were also from the remasters, which are sold exclusively digitally right now (in Japan at least).
 
No, there was a very recent PR that had it at 5M, several here thought that was still the current LTD, while others were pointing out it just referred to the years old PR, as it made little sense for the game to still be near 5M years later.
With all the accusations from Bloomberg, if the game has reached any meaningful milestone, they would've said it.
 
Do you mean 16? Probably, I believe all the copies they sold to Sony to bundle with PS5s were digital. I think a lot of the sales they contributed to this quarter were also from the remasters, which are sold exclusively digitally right now (in Japan at least).
lol yes i do. yeah that makes sense for the high digital, i was just surprised that a new entry can’t even seemingly pull like… probably any more than 2 mil or so at retail
 
I think they need to perfectly nail the next Nier and DQXII both in terms of

- overall quality
- platform choices
- release window
Need? Probably. Will they? Now that's the question. Though I don't think that Nier will help them that much. Did Replicant sell well? I know that Automata was pretty popular (and produces a lot of fan art), but it feels like Replicant came and went.

It also does not help that FF14 had its Avengers Endgame moment basically.

Rankings all around the world showed that the game had terrible legs.
At this point FF games are being sold to the people who would have bought the game anyway. I am curious of PC performance as it will launch with smaller gap (in comparison to FF7R).

I believe all the copies they sold to Sony to bundle with PS5s were digital.
But isn't bundled copy counted as a physical/retail?
 
The fact they didn't share any sales update for Final Fantasy XVI is a bit worrying considering the fact that Final Fantasy is usually pretty frontloaded and legs were terrible all around. Not a good outlook for the franchise.

SE's main problem is profitability. Everything else is fine.



Not really. When SE releases sales milestone is completely arbitrary.

We had the same thing for FF7R, were several people were for sure the game was still near 5M due to no new sales update, and then few weeks later SE confirmed 7M.

With all the accusations from Bloomberg, if the game has reached any meaningful milestone, they would've said it.

They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me
 
They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me

Pixel Remasters were released on consoles around the same time too. Also catalogue sales.

Final Fantasy was selling 8-10m units on a single platform (PS1/PS2) when the market was much smaller. Back then, the release of a new mainline Final Fantasy was an event in the video game industry, while Final Fantasy XVI released without too much fanfare and dropped pretty significantly after launch. Also, Resident Evil games typically have better legs so comparison is not really appropriate also considering that Resident Evil 4 is a remake and that Resident Evil has bi-yearly releases at this point while the last mainline Final Fantasy games released 7 years ago and the last remake 3 years ago.
 
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They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me
They'd probably announce a 5m or higher milestone going by past titles so I'd wager it's still below that.

I still think FFXVI sold fine though.
 
But isn't bundled copy counted as a physical/retail?
It's counted as package/retail by Famitsu/MC, but SE could choose to count it however they see fit. I think they probably count it as a download/digital, as this would fit best with the way they want to show digital growth, but I'm not particularly loyal to it if I am shown a good alternative theory one way or another. One might be able to investigate this by combining known package sales from Famitsu in FY2023/3 H1 to what they report in their table, as I don't think they had any digital download codes bundled with hardware then, so it should be fairly straight forward.
 
They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me

Yeah FF16 is doing fine at 4-5M around now
 
Pixel Remasters were released on consoles around the same time too. Also catalogue sales.

Final Fantasy was selling 8-10m units on a single platform (PS1/PS2) when the market was much smaller. Back then, the release of a new mainline Final Fantasy was an even in the video game industry, while Final Fantasy XVI released without too much fanfare and dropped pretty significantly after launch. Also, Resident Evil games typically have better legs so comparison is not really appropriate also considering that Resident Evil 4 is a remake and that Resident Evil has bi-yearly releases at this point while the last mainline Final Fantasy games released 7 years ago and the last remake 3 years ago.

Speaking of the Pixel Remasters, reminder:

https://www.gematsu.com/2023/05/final-fantasy-pixel-remaster-series-sales-top-two-million | 2 millions as of May 2nd, 2023
https://www.gematsu.com/2023/09/final-fantasy-pixel-remaster-series-sales-top-three-million | 3 millions as of September 4th, 2023

Due to the second-to-last milestone being crossed in early May, we definitely cannot say that the Pixel Remasters sold 1 million from July to September. Nonetheless, their sales are a relevant part of the 5 million units sold by the Final Fantasy franchise as a whole during the same period.
 
Need? Probably. Will they? Now that's the question. Though I don't think that Nier will help them that much. Did Replicant sell well? I know that Automata was pretty popular (and produces a lot of fan art), but it feels like Replicant came and went.
Replicant sold over 1.5 million. It was big decline from Automata, but it was a remake of a game that was a huge failure. It was highly unlikely to sell as well as a new installment. Also, saying Automata was "pretty popular" is a massive understatement. It has sold 7.5 million, and it keeps selling, even now. The game has outsold every Kingdom Hearts and every Dragon Quest game . NieR is now Square's second biggest series. It's always possible they will drop the ball with NieR 3 and the series will be a one-hit wonder, but there's no reason to think that it wouldn't be at least a multi-million seller.
 
They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me
1 platform is not really a limiter people think it is. The limit is of an install base is going to be like 15% at launch and the limit doesn't really apply after that unless the install base is under 20 million (though in that the launch limit can be higher). There is still some minor loss from not reaching every possible consumer but, that isn't that much in the grand scheme of things,
Also, the concern is more that Square Enix needs FF to be bigger to function as the pillar they want it to be. It doesn't have the legs of Resident Evil and Capcom also has Monster Hunter. Square Enix is currently reliant on their mobile space that is a near saturated market with Dragon Quest spinoffs and that is currently receding.
 
They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me

are you implying FFXVI is the only responsible for that FF brand sales milestone update?
because it's not, even if it could / should be the main contributor
 
Replicant sold over 1.5 million. It was big decline from Automata, but it was a remake of a game that was a huge failure.
The original PS360 NieR sold 700k so the remake essentially doubled it. I wouldn't call it a huge failure either. It wasn't exactly a hit but still a modest seller and a decent increase from the earlier Drakengard titles on PS2.

Replicant did ok but I do think SE probably expected more after how huge Automata blew up and continues selling. It practically is a new game for the majority of the fanbase.
 
As i wrote in the other thread the budget of FF games need to go down, they can still have the highest budget of every other JRPG game but they need to be budgeted to be profitable with 4-5 million sales at most and then make games that they can have on every major gaming platform day 1. Ultra high budgets like XVI had launching on 1 platform is no longer viable for the franchise to continue in the future. Make the FF series a bigger budget version of Tales of series and Dragon Quest series. They can no longer make FF games that need to sell 8 million to not bomb for them financially.
 
As i wrote in the other thread the budget of FF games need to go down, they can still have the highest budget of every other JRPG game but they need to be budgeted to be profitable with 4-5 million sales at most and then make games that they can have on every major gaming platform day 1. Ultra high budgets like XVI had launching on 1 platform is no longer viable for the franchise to continue in the future. Make the FF series a bigger budget version of Tales of series and Dragon Quest series. They can no longer make FF games that need to sell 8 million to not bomb for them financially.

Why would Square ever want this.

What business is like "let's lower risk by 1% while ensuring that we're basically just Tales of in terms of cache and sales potential"
 
Why would Square ever want this.

What business is like "let's lower risk by 1% while ensuring that we're basically just Tales of in terms of cache and sales potential"
I don't really understand your point, as of now Square Enix is making FF games with an incredible AAA budget that makes them bomb due to only selling 5 million copies when they get budget as if they are God of war popular, which they evidently are not. So what is the point to continue to give these games such a high budget in the future? Square Enix probably don't want to continue releasing FF bombs in the future, and some magical westernification to make these games more popular with mainstream western gamers haven't led to anything of value for them either. Of course they would want ultra budgeted AAA FF games to sell 10-15 million copies and everything would be great for them, but is that in any way realistic? Or would it be more realistic to scale down the ambition level, pocket a profit from 4-5 million sales? To me that seems way more realistic than to see FF explode in popularity with the current gaming landscape and see the next FF game double or triple the amount of sales XVI did.

Sometimes you don't get what you want, sometimes you have to scale down a franchise to match the actual fan base and appeal of the franchise. Or else you end up with a franchise that doesn't make a profit any longer and thus makes no sense to continue. This isn't anything new, we have seen tons of franchises decline in popularity and being discontinued, it just happens that FF is one of these declining franchises today but all hope is not lost if the strategy changes from now on.
 
Replicant sold over 1.5 million. It was big decline from Automata, but it was a remake of a game that was a huge failure. It was highly unlikely to sell as well as a new installment. Also, saying Automata was "pretty popular" is a massive understatement. It has sold 7.5 million, and it keeps selling, even now. The game has outsold every Kingdom Hearts and every Dragon Quest game . NieR is now Square's second biggest series. It's always possible they will drop the ball with NieR 3 and the series will be a one-hit wonder, but there's no reason to think that it wouldn't be at least a multi-million seller.
I think Automata was the exception. I doubt the next Nier will come close to Automata. For various reasons.
 
I don't really understand your point, as of now Square Enix is making FF games with an incredible AAA budget that makes them bomb due to only selling 5 million copies when they get budget as if they are God of war popular, which they evidently are not. So what is the point to continue to give these games such a high budget in the future? Square Enix probably don't want to continue releasing FF bombs in the future, and some magical westernification to make these games more popular with mainstream western gamers haven't led to anything of value for them either. Of course they would want ultra budgeted AAA FF games to sell 10-15 million copies and everything would be great for them, but is that in any way realistic? Or would it be more realistic to scale down the ambition level, pocket a profit from 4-5 million sales? To me that seems way more realistic than to see FF explode in popularity with the current gaming landscape and see the next FF game double or triple the amount of sales XVI did.

Sometimes you don't get what you want, sometimes you have to scale down a franchise to match the actual fan base and appeal of the franchise. Or else you end up with a franchise that doesn't make a profit any longer and thus makes no sense to continue. This isn't anything new, we have seen tons of franchises decline in popularity and being discontinued, it just happens that FF is one of these declining franchises today but all hope is not lost if the strategy changes from now on.

Except the games aren't actually losing money yet because the IP's cache allows Square to get huge marketing and licensing deals.

If you dramatically cut the IP's budget, you probably

1. Lose the franchise's cache, costing tons of opportunities for external revenue
2. Send a signal to your fanbase that the franchise is dying and you're cutting back on investing on it, probably leading to millions fewer sales

You're trying to come off as sensible unlike stupid Square Enix, but you're really just encouraging them to kill their only franchise with any growth potential (though that potential is dimming each year)

If you want to argue for cutting a franchise's budget, it's probably Dragon Quest as DQ will never be liked by people outside of Japan and can probably sell 3.5m to 4m in Japan every entry no matter how cheaply made.
 
The original PS360 NieR sold 700k so the remake essentially doubled it. I wouldn't call it a huge failure either. It wasn't exactly a hit but still a modest seller and a decent increase from the earlier Drakengard titles on PS2.

Replicant did ok but I do think SE probably expected more after how huge Automata blew up and continues selling. It practically is a new game for the majority of the fanbase.
2B is far more marketable then anyone in Replicant.
 
Based on the 0 sales PR from SE for FFXVI, it's safe to say that the game was front-load and was struggling to sell the initial stock. Probably around 3.5–3.7 million units for now.

185 million for the FF franchise further solidified that with FFXVI+Pixel Remastered+old catalogue games = 5 million units.
 
Based on the 0 sales PR from SE for FFXVI, it's safe to say that the game was front-load and was struggling to sell the initial stock. Probably around 3.5–3.7 million units for now.

185 million for the FF franchise further solidified that with FFXVI+Pixel Remastered+old catalogue games = 5 million units.
It is probably in line with FF7R sales, albeit lower. But the chart probably will be similar.
 
Speaking of the Pixel Remasters, reminder:

https://www.gematsu.com/2023/05/final-fantasy-pixel-remaster-series-sales-top-two-million | 2 millions as of May 2nd, 2023
https://www.gematsu.com/2023/09/final-fantasy-pixel-remaster-series-sales-top-three-million | 3 millions as of September 4th, 2023

Due to the second-to-last milestone being crossed in early May, we definitely cannot say that the Pixel Remasters sold 1 million from July to September. Nonetheless, their sales are a relevant part of the 5 million units sold by the Final Fantasy franchise as a whole during the same period.

An educated guess would put Pixel Remasters at least at 500-600k units from July to September; catalogue sales of 200-300k units would put Final Fantasy XVI at 4.1-4.3m units.
 
An educated guess would put Pixel Remasters at least at 500-600k units from July to September; catalogue sales of 200-300k units would put Final Fantasy XVI at 4.1-4.3m units.
Packaged version reprints of the Pixel Remaster collection started becoming readily available at different retailers in June too iirc, so that could've given it a decent push sustained over the summer. And each game is counted separately 1 packaged sale might equate to 6 sales drpending on how Square counts them.
 
Nier Sqrt(1.5) doing 1.5M (so far) is a really goddamn great performance. For an extensive remaster to put up numbers like that is a sign for Square Enix to keep spending a bunch of money on these high-quality-but-faithful remakes/remasters. The usual fear is that if a re-whatever only does like half or a third of the original release they could be major losses, but actually exceeding the original by 100% or more is fucking huge that any of the JRPG houses would start funneling truckloads of money into updates to old games (which is what Square Enix is fully doing these days).

People have weirdly inflated expectations for game sales by looking at the tiny sliver of RPGs that are massive breakout hits, but something like 1.5M puts a Nier Remaster in the land of things like normal mainline Tales, SMT, or Fire Emblem. It seems like this would be like the Mana remakes where Square Enix looks at it as confirmation that remakes/remasters are a great use of money.
DQXI was at 6.5m global 2 years ago. Maybe wait and see if FFXVI gets there before arguing to cut DQ's budget instead.

DQXI is a good example of how hard it is to predict legs for these types of games, too. The story of DQXI seems like it has drifted all over the place but it just keeps legging higher and higher. Same gen update without upgrade path helped, and I don't think FF16 is going to get that same benefit.

As i wrote in the other thread the budget of FF games need to go down, they can still have the highest budget of every other JRPG game but they need to be budgeted to be profitable with 4-5 million sales at most and then make games that they can have on every major gaming platform day 1. Ultra high budgets like XVI had launching on 1 platform is no longer viable for the franchise to continue in the future. Make the FF series a bigger budget version of Tales of series and Dragon Quest series. They can no longer make FF games that need to sell 8 million to not bomb for them financially.

This is just wild extrapolation based on not a whole lot. What is your budget expectation for the game, like actual dollar amount? And what was the effective value of the Sony marketing deal? I agree that Square Enix probably made a bad deal overall by signing an exclusivity window in 2020 or 2019 for a 2023 release when it was impossible to know what the PS5 market would look like, but FF16 is tracking above nearly any other JRPG franchise on the market. We have to extrapolate way too much to treat it like some type of failure rather than "good but not a breakout".

Figuring out genuinely lost sales from 6-12 month exclusivity that won't be recovered when the ports do happen (which is extremely difficult to estimate) and how much the exclusivity window deals are worth (which we have barely any estimate for whatsoever) means that we have no idea what optimizes revenue or ROI. Increasing budgets are a huge problem... which is why companies sign these types of deals which can be worth tens of millions of dollars.

 
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SE's main problem is profitability. Everything else is fine.



Not really. When SE releases sales milestone is completely arbitrary.

We had the same thing for FF7R, were several people were for sure the game was still near 5M due to no new sales update, and then few weeks later SE confirmed 7M.
7R released in April during Q1 of FY2020 and had a sales update 4 months later when the Q1 report came out in August and we were in Q2 by then, XV also had a sales update in January of 2017 which was the start of Q4 FY2017 which had a report in Feb 2017 also state that XV had exceeded expectations with the 6m and that its DLC margins were also high, and it released at the tail end of Q3 FY 2017. FFXIII also got a number of sales updates from Dec 2009 to May 2010, partly due to the staggered release but even then they updated its total numbers in May from what it was in March too.
Those got updates because they kept selling during their launch period, the reason XVI has not got an update is because its legs are non-existent, and any number SE would say for it that it has at this current time would negatively affect them as it would show that FFXVI has barely sold anything,. It has in all likelihood not even sold through 3 million yet.

In regards to 7R, we knew that the Steam version did at least 500k and that it had limited tracking of the PS5 version before that fell off we could see that at least sold about on par with Forspoken, at minimum you could have confidently said 7R had done at least 6m prior to when SE finally updated the numbers.

They've said FF franchise sold 185 mil. So, during FF16 release it was 180 mil. So, probably FF16 is in range 4-5 mil. by now.
For comparison RE4 Remake sold 5.4 mil. on 4 platforms since March and it is considered as good sales. Saying that FF16 sold bad on 1 platform baffles me
FFXVI cost significantly more than RE4 remake, also was in dev significantly longer, RE4R doing the numbers its doing is more impressive than FFXVI doing the numbers its doing, and I responded to this wild claim in the other thread but there is no way XVI is even close to 4m yet based on its extremely poor sales from Q2 onward.

Yeah FF16 is doing fine at 4-5M around now
No shot, based on its terrible Q2 onward sales its most likely it hasn't even sold through 3 million yet, absolute best case scenario is it's at 3.5m now which is still not good.
 
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Lowering the budget for FF games isn't a bad idea.
The franchise cannot keep outputting AAA games if sales are stuck at 7m because budgets will continue to increase. And I don't think increasing the number of platforms would help because most FF gamers are on PS and yet sales don't go beyond 7 million.

Some people have suggested that marketing deals can lower these costs but that is a dangerous option because it makes you very reliant on the marketer.

Back in 2013 SE said that Tomb Raider selling 3.4 million copies was a disappointment and then sold the IP.
Well, FF16 costs much more to make than TB and sales aren't that much higher, so what's the solution there?
 
The franchise cannot keep outputting AAA games if sales are stuck at 7m because budgets will continue to increase. And I don't think increasing the number of platforms would help because most FF gamers are on PS and yet sales don't go beyond 7 million.
They will increase. In time. You need to grow you community. And also 7m is the exception due to FF7R being a very anticipating game. I don't think FF7R will sell anywhere close.

The fundamental issue is that Square Enix and Sony's deal created a situation where the support for FF was eroded and did not grow across any other platform aside Playstation. And on Playstation, they sell FF to the people who would have bought the game anyway.

And now the cost of the games has increased, the time to make them has increased and FF began too expensive to produce and it would take too long to deliver the game. Compare Yakuza cadence. Or Persona. Those games are easier to make and they can come out faster.
 
Back in 2013 SE said that Tomb Raider selling 3.4 million copies was a disappointment and then sold the IP.
Well, FF16 costs much more to make than TB and sales aren't that much higher, so what's the solution there?
You're skipping a lot of steps there, as in, nearly a full decade of sales and development costs. Tomb Raider was a high budget game in what is probably the most expensive region in the world for game development, and had two sequels to prove itself and showed that it continued to make really expensive games that barely made any money. The high bid for the studio and franchise was only $300M because everybody that looked at it also saw high risk, low reward outcomes, and nothing at all about Embracer's last year suggests they managed to find some secret sauce or that their flood of acquisitions were some hidden treasures destined for hits.

Tomb Raider 1 did eventually get there:
But it took time and probably had a decent number of sales and bundles getting there. The PS3 era was peak of the "steep sales" leg approach because subscription services hadn't been around to act is a primary source of leg revenue.

We, as a sales forum, look at raw copies moved or bundled, but FF16 is almost certainly going to keep a higher revenue per copy sold on top of a bunch of additional revenue from subscription services or effective marketing revenue.
 
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Nier Sqrt(1.5) doing 1.5M (so far) is a really goddamn great performance. For an extensive remaster to put up numbers like that is a sign for Square Enix to keep spending a bunch of money on these high-quality-but-faithful remakes/remasters. The usual fear is that if a re-whatever only does like half or a third of the original release they could be major losses, but actually exceeding the original by 100% or more is fucking huge that any of the JRPG houses would start funneling truckloads of money into updates to old games (which is what Square Enix is fully doing these days).

People have weirdly inflated expectations for game sales by looking at the tiny sliver of RPGs that are massive breakout hits, but something like 1.5M puts a Nier Remaster in the land of things like normal mainline Tales, SMT, or Fire Emblem. It seems like this would be like the Mana remakes where Square Enix looks at it as confirmation that remakes/remasters are a great use of money.


DQXI is a good example of how hard it is to predict legs for these types of games, too. The story of DQXI seems like it has drifted all over the place but it just keeps legging higher and higher. Same gen update without upgrade path helped, and I don't think FF16 is going to get that same benefit.



This is just wild extrapolation based on not a whole lot. What is your budget expectation for the game, like actual dollar amount? And what was the effective value of the Sony marketing deal? I agree that Square Enix probably made a bad deal overall by signing an exclusivity window in 2020 or 2019 for a 2023 release when it was impossible to know what the PS5 market would look like, but FF16 is tracking above nearly any other JRPG franchise on the market. We have to extrapolate way too much to treat it like some type of failure rather than "good but not a breakout".

Figuring out genuinely lost sales from 6-12 month exclusivity that won't be recovered when the ports do happen (which is extremely difficult to estimate) and how much the exclusivity window deals are worth (which we have barely any estimate for whatsoever) means that we have no idea what optimizes revenue or ROI. Increasing budgets are a huge problem... which is why companies sign these types of deals which can be worth tens of millions of dollars.
Ever since FFXVI was released Square Enix has released bad financial report after another, so the game seems to have bombed pretty badly from the start, whatever they expected in sales seems to be much higher than the sales they got in reality. And i am one of the people that actually liked XVI, but from SE point of view it seems to have failed everything they tried to achieve with the game. The legs are terrible and it almost stopped selling at all after the 1 week or so.

So everything seems to point to the game being overbudgeted with Square Enix widly overestimating the appeal and sales potential of FFXVI, so either they can try again with a big budget FF and risk repeating the same failure or scale down the budget so they can actually make a profit from the next FF selling 5 million copies.
 
Considering this is the second quarter for the fiscal year with a substantial YoY decline in operating income, if they had the means to provide a new meaningful milestone for FFXVI, they would have done so to try and get a bit of a stock price rebound. That may be a cynical take, but it's no less true for being so.
 
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You're skipping a lot of steps there, as in, nearly a full decade of sales and development costs. Tomb Raider was a high budget game in what is probably the most expensive region in the world for game development, and had two sequels to prove itself and showed that it continued to make really expensive games that barely made any money. The high bid for the studio and franchise was only $300M because everybody that looked at it also saw high risk, low reward outcomes, and nothing at all about Embracer's last year suggests they managed to find some secret sauce or that their flood of acquisitions were some hidden treasures destined for hits.

Tomb Raider 1 did eventually get there:
But it took time and probably had a decent number of sales and bundles getting there. The PS3 era was peak of the "steep sales" leg approach because subscription services hadn't been around to act is a primary source of leg revenue.

We, as a sales forum, look at raw copies moved or bundled, but FF16 is almost certainly going to keep a higher revenue per copy sold on top of a bunch of additional revenue from subscription services or effective marketing revenue.
Based on how fast SE put FFXVI on sale and how it's already selling so terribly, it is selling worse than Tomb Raider 2013 in comparable time frame.
The fact that when TR 2013 was at 3.4m SE considered it as underperforming while once it hit 6m they said it exceeded expectations is already telling, and FFXVI already sold less than 3m to begin with. Since game development is more expensive now than it was in 2013 and prior, there is no reason to think TR2013 somehow cost more, FFXVI not only took like 2x longer to make but also has a bigger dev team and had way more marketing. TR 2013 had legs, FFXVI has no legs so what "higher revenue" is it supposed to be making exactly, especially when it's already being heavily discounted anyway?
 
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