Square Enix summed up the financial quarter ended June 30. In the report, the company not only published big numbers, but also explained why it decided to get rid of Western studios.
Let’s start with financial indicators. In short, income Square Enix declined, and the MMO segment surpassed single-player revenue for the first time. More details:
From April to June 2022, net sales were $562 million (¥74.88 billion), down 15.5% from last year.
Operating income – $108.4 million (¥14.4 billion). It fell by 16.7% compared to the same period last year.
The share of profits from single-player games has halved, while from MMOs, on the contrary, it has grown by 21.6%. At the same time, in the multi-user segment SE includes only three projects: Final Fantasy XIV, Dragon Quest X and Final Fantasy XI.
As for parting with Crystal Dynamics and eidosin conversation with investors Square Enix explained her motives. She feared that the projects of these studios would negatively affect the sales of her other games.
In addition, parting with Western assets is only the first stage in business restructuring. Square Enix. As a second step, the company will review the portfolio of its studios and decide whether to buy them outright or let other organizations take ownership of them. So SE intends to improve the efficiency of the use of capital.
By opinion analytics David Gibson (David Gibson), such measures will make it easier to distribute and move resources between studios Square Enix. He suggested that the company would now mainly focus on Japanese games.
Recall the buyer Crystal Dynamics and eidos became Embracer Group. The holding acquired the studios for $300 million. The deal is expected to close by the end of 2022.
