Square Enix has managed to return to profit, thanks largely to the strong performance of Final Fantasy XIV: A Realm Reborn.
The company has just released its financial report for the nine month period ending December 31, 2013, which reveals a rather impressive turnaround.
Compared with the period last year, whilst sales remained flat at 102.5bn yen this year compared to 102.8 bn yen last year, net income shifted drastically from a loss of 5.7bn yen in 2012 to a profit of 5.2bn yen in 2013. Operating income also moved from a loss of 4.9bn yen to a profit of 7.8bn yen. It paints a pretty stark contrast with the company's "extraordinary loss" from last year, and Square Enix is now predicting profits of up to 6bn yen by the end of financial year on March 31, 2014.
In terms of who to thank for this change in fortune, Square Enix suggests it's the relaunched MMO Final Fantasy XIV, which topped 1.5 million registered accounts upon its relaunch last year, better than the company expected. With the game still due to launch on PS4 in April and a beta test is scheduled to begin on February 22, this title could get a healthy financial pump to profits at the start of the next financial year. Square Enix has previously announced that anyone who purchases the PS3 version of Final Fantasy XIV will also be able to upgrade to the PS4 version absolutely free.
"During the nine-month period ended December 31, 2013, revenues from distribution of console game titles in North America were strong," reads the accompanying report. "Software sales and operation of 'Final Fantasy XIV:A Realm Reborn,' a massively multiplayer online role playing game released in August 2013, have been making favourable progress.
"Content for platforms such as smart devices and PC browser has continued to build upon its already solid growth. Among other titles, 'Sengoku Ixa,' a PC browser game, has been showing steady performance, and 'Kaku-San-Sei Million Arthur,' a game for smartphones, has become an instant hit in Taiwan and mainland China, following Korea, while its platform has expanded to include the PlayStation Vita."
Square Enix looked to be in trouble earlier this year following poor financials and a leadership review, though it seems the company could be on the verge of turning things around. With new Sleeping Dogs and Deus Ex games on the way, along with the upcoming Thief, Final Fantasy XV, Kingdom Hearts III and a new next-gen Hitman, Square could be set to start the next financial year feeling much more positive than it was at the start of this one.
http://www.ign.com/articles/2014/02/05/square-enix-financials-cast-final-fantasy-14-as-saviour
