Square Enix Sales Decline

Square Enix Sales Decline

For the fiscal year ended 3/31/23 Square Enix (9684.T-JP: Tokyo) reported a 6% decline in revenue to ¥343,267 million (close to $3 billion).  The Digital Entertainment division, which accounts for 72% of sales, saw a 12% decline. Analysis It was a turbulent year for Square Enix.  Last May, the company sold its Western-based Eidos division to the Embracer Group.  Early this year the game.....
Square Enix CEO Steps Down

Square Enix CEO Steps Down

Square Enix (9684.T-JP: Tokyo) CEO and president Yosuke Matsuda is stepping down.  He will be replaced by Takashi Kiryu, the former chief strategy officer. The change will be finalized at the Annual Shareholders’ Meeting in May. Analysis Matsuda had been a major proponent of NFT and blockchain games.   After a rough 2022 for the category, Matsuda reemphasized the company focus on NFTs in a New Year’s Letter .....
Japanese Video Game Companies Increase Focus on Western Markets

Japanese Video Game Companies Increase Focus on Western Markets

In a tough 2022, Japanese video game publishers did surprisingly well in the high-end North American and Europe markets.  This is an indication of a trend of Japan IP having a larger impact on the global market.  It also highlights some major differences between pay-upfront business models and live services/free-to-play models. Japanese Companies Dominated the Late 1980s and early 1990s With the rise of Nintendo in the 1980s, publishers from Japan grew by developing .....
Square Enix Revenue Declines

Square Enix Revenue Declines

For the latest quarter ending 12/31/22, Square Enix (9684.T-JP: Tokyo) (OTC: SQNNY) saw revenue decline 12% to ¥92,224 million (about $800 million).  Mobile game sales were down 25%, HD game sales were up 10%, and MMO game sales were down 41%.  For the nine-month period ending 12/31/22, sales were down 7%, however, profit was up 16% to ¥46,397 million. Analysis Square Enix has a lot of moving parts.  Its video game division “Digital Entertainment” accounts for about 7.....
Square Enix’s Forspoken is First Major Disappointment of 2023

Square Enix’s Forspoken is First Major Disappointment of 2023

Square Enix’s Forspoken is one of the first major exclusives for PlayStation 5 to launch in 2023.  Unfortunately, reviews have been mixed with a current score of only 67 on Metacritic. Analysis Forspoken was a highly anticipated title for both PlayStation 5 and PC.  Most reviews have been mixed with some reviewers really enjoying the title.  Forbes writer.....
Is Square Enix Trying to Do Too Much?

Is Square Enix Trying to Do Too Much?

For 2022, Square Enix (9684.T-JP: Tokyo) (OTC: SQNNY)  stock was down 1%.  This compares with a 30% decline for the DFC Intelligence Video Game Stock Index.  However, among Japanese video game companies, Square Enix was one of the weaker performers.  Overall Japanese video game companies had a strong stock price increase of 15%. The big news from Square Enix has been the sale of Western assets and IP to the.....
Square Enix Results Disappoint

Square Enix Results Disappoint

For the first six months of fiscal 2023, ending 9/30/22, Square Enix Holdings (9684.T-JP: Tokyo) reported a 3.3% decline in net sales and an 11% drop in operating income. Analysis The results for Square Enix were mixed but not that bad.  In May, Square sold Eidos, Crystal Dynamics, and the related IP and studios to Embracer Group.  The goal was to focus more on blockchain games. The bigg.....