Square Enix Operating Income Down By 78% Despite Final Fantasy 16 Release

Expert Verified By

Due To Huge Costs of Game Development!

Square Enix has been a staple of the gaming industry over the decades. Despite a few rotten apples, the publisher has many successful IPs and recently displayed an impressive performance with Final Fantasy 16.

However, Final Fantasy 16’s success has not been enough to boost Square Enix’s operating profits. The business recently released its FY24 Q1 Results, and its operating income was down by 78.5% from the previous year.

Why it matters: Game development is becoming more expensive with each generation, and this also means that losses can be disastrous for publishers and developers.

Square Enix FY24 Q1 Results
Square Enix FY24 Q1 Results

The report hints that the success of Final Fantasy 16 was not enough to overshadow the other weak releases from Square Enix.

Recently, the publisher released games like Forspoken. The game cost over $100 million to develop but ended up falling far behind expectations. This has likely played a major role in the declining operating income.

Previously, Square Enix admitted that Forspoken was a failure and its sales were “lackluster.” Additionally, Square Enix’s MMO sales are down by 22%, and mobile game sales are down by 18.7%.

Nonetheless, Square Enix will likely recover in the coming months. The gaming giant has recently partnered with Xbox to bring Final Fantasy 14 and other games to the platform. This should help improve revenue from the MMO.

Furthermore, the publisher’s net sales are up by 14.4%. It sold 7.54 million games in FY24 Q1, almost twice as many as it shipped in FY23 Q1. HD sales have also seen a massive 140% increase due to Final Fantasy 16 and Final Fantasy Pixel Remasters.

The gaming giant has also highlighted plans for future remasters and faster AAA releases through streamlined game development. These measures could ensure improved revenue and profits through beloved classics and existing IPs.

Was our article helpful? ๐Ÿ‘จโ€๐Ÿ’ป

Thank you! Please share your positive feedback. ๐Ÿ”‹

How could we improve this post? Please Help us. ๐Ÿ˜”

Latest News

Join Our Community



Indiana Jones To Receive Hands-On Impressions & Previews In June

A trusted source has revealed that Indiana Jones and Avowed previews are coming just a day after the Xbox showcase airs.

Elden Ring Debuts Stunning Shadow of the Erdtree Story Trailer

Elden Ring Shadow of the Erdtree has just received a new trailer going over the story elements of the expansion.

Nvidia GeForce RTX 5090 Is Reportedly Based On Monolithic Die

Nvidia's flagship GeForce RTX 5090 card is expected to feature a monolithic design compared to MCM on its AI focused Blackwell cards.

Respawn Hiring For Multiplayer Game Amid Reports of Return To Titanfall

New job listings show that Respawn Entertainment is creating a new project that involves multiplayer gameplay.

Ghost of Tsushima Still Top Seller On Steam Nearly 2 Weeks After Launch

Ghost of Tsushima has been available on Steam for nearly two weeks, but it has retained the top spot on the platform's best-sellers list.