Rising catalog sales and the launch of new titles like Final Fantasy VII Remake and Marvel’s Avengers helped boost net sales at Square Enix.
According to its fiscal report for the nine months ended December 31, 2020, consolidated net sales across the whole company rose by 33.7 percent year-over-year to 253.6 billion yen ($2.4 billion), while profits dipped by 4.3 percent to 18.3 billion yen ($173.6 million).
Looking specifically at Square’s Digital Entertainment segment, which houses its video game operations, net sales increased by 48.6 percent to 203.5 billion yen ($1.9 billion), and operating income rose by 43 percent to 42.2 million yen ($400.4 million).
The company attributed that upswing to the release of “major titles” like Final Fantasy VII Remake and Marvel’s Avengers, rising digital sales of catalog titles within its HD Games sub-segment (pictured below), and a “turn to profit at the operating line.”
Elsewhere, sales within the MMO Games sub-segment declined year-on-year following the launch of expansion packs for Final Fantasy XIV and Dragon Quest X in the previous fiscal year. Operating income rose, however, in part due to recurring revenue from those two titles.
As for the Smart Devices/PC Browser sub-segment, both net sales and operating income increased year-on-year thanks to positive showings from titles like Dragon Quest Walk, War of the Visions: Final Fantasy Brave Exvius, and Dragon Quest Tact.
Looking ahead, Square is sticking with its financial forecast and still expects to see consolidated net sales of 290 billion yen ($2.7 billion) and profits of 24 billion yen ($227.7 million) when the fiscal year ends on March 31, 2021.