Sq. Enix reported their Q2 2022 earnings on Friday with complete income coming in at 53.5 billion Yen ($396m USD). Extra apparently although, income from 2 of the three main video games segments confirmed declines whereas only one section confirmed progress. HD Video games (assume purchase to play video games) and Cellular video games have been each down during the last 2 years whereas solely MMO video games elevated. Sq. Enix chalks up the power of MMOs to “paying subscriber numbers for Ultimate Fantasy XIV rose YoY (yr over yr)”
Income for MMO video games (Ultimate Fantasy XI, Dragon Quest X, and Ultimate Fantasy XIV) got here in at 14.1 billion Yen mixed (~$104m USD) with the overwhelming majority of that coming from FFXIV. That is the primary time within the firm’s historical past that MMO income surpassed that of conventional recreation gross sales (HD Video games). Whereas cellular recreation revenues stay considerably greater than every other class, it is price mentioning that these revenues are usually a lot decrease margin than PC video games, which implies that Ultimate Fantasy XIV is at the moment by far Sq. Enix’s most necessary title.
Sq. Enix talked about that whereas they don’t have any growth packs deliberate for any of their present MMOs they may give attention to retaining customers by way of a ‘number of operational initiatives’ (which simply means common content material updates).
Sq. Enix inventory surged on Friday after these outcomes have been revealed. The first reason behind the rise was the corporate telling analysts that they deliberate to promote a stake in lots of their remaining improvement studios (they already bought Crystal Dynamics and Eidos to Embracer Group). The corporate did say they plan on maintaining 100% possession in some studios, however buyers ought to anticipate stake gross sales sooner or later. The rationale behind the transfer is to decrease the corporate’s personal money prices of launching new video games. If a studio is 50% owned by Sq. Enix, they solely have to put up half the prices of a brand new recreation (whereas additionally solely maintaining half the income after all).
Additional Studying: Sq. Enix Q2 2022 Presentation