Square Enix Announces Its Sales Dropped Over Q1

Square Enix, a Japanese video game company best known for the Final Fantasy series, has published a financial report for the first quarter of the fiscal year of 2024. From April to June, the company's net sales dropped by 18.4% compared to the same time span in 2023. However, operating and ordinary income increased by 250.1% and 66.7%, respectively.

According to the report, the HD Game sub-segment’s net sales for this period decreased compared to the same period of the previous year, which had included the release of titles such as Final Fantasy XVI and Final Fantasy Pixel Remaster, due to a decline in sales of new titles. However, as stated in the document, the HD Game sub-segment turned profitable on lower development cost amortization and advertising expenses compared with the same period of 2023.

At the same time, the company's segments engaged in the distribution of arcade game machines and publications of comic magazines, comic books, and game-related books have seen an increase in net sales and operating income.

In March 2024, Square Enix also reported financial losses caused by "content abandonment", and in August 2023, Final Fantasy 16's sales dropped significantly after being "extremely strong" in July 2023.

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