Square Enix has released its latest financial results, and it doesn’t look good for Marvel’s Avengers.
The Japanese company has released its financials for the six-month period to September 30, 2020, and while both sales and profits are up year-on-year 2019 (Square Enix releases Final Fantasy 7 in early 2020), the quarter that Marvel’s Avengers released lost 36 million pounds.
The Square Enix business that we are interested in here is called “Digital Entertainment – HD Games”.
The company did not say how many copies Marvel̵7;s Avengers has sold, or comment on its performance. But Crystal Dynamic’s tough adventure goes badly when we compare the two quarters of the current fiscal year.
In the first quarter of fiscal 2021, when a remake of Final Fantasy 7 was released, the HD Games division posted net sales of 34.1 billion yen (£ 250 million) and operating income of more than 10 billion. yen (£ 73 million). That is a small profit in the period.
Then we have the second quarter of fiscal year 2021, in which Marvel’s Avengers debut. During this period (early July to late September) Square Enix’s HD Games business posted a net revenue of 23.7 billion yen (£ 174 million) and operating losses of more than 5 billion yen (£ 36 million). ). That’s not great.
It’s hard to know exactly how far Marvel’s Avengers have slipped its revenue target, but it’s clear the game didn’t do the business for Square Enix. In a tweet, Tokyo-based video game analyst David Gibson said “numbers reached 60% of the plan” and the Avengers had sold “just 3 million or more”.
In early October, Crystal Dynamics said it was working on new updates to the game “as fast as possible safely” to restore player interest.
At the time, SteamCharts figures showed that the game’s PC audience had fallen to around 1000-2000 people a month after launch – low enough to cause matchmaking issues. At the time of this article being published, there were only 798 people playing Marvel’s Avengers on Steam.
In mid-October, Square Enix and Crystal Dynamics delayed the PlayStation 5 and Xbox Series X versions of Marvel’s Avengers until an unknown date in 2021.
Until then, you can play the game through backwards compatibility, though of course this won’t happen to those with a disc-based copy of the game that bought PlayStation 5 Digital Edition or Xbox Series S.
“We made the decision to move the PlayStation 5 and Xbox Series X | S to launch next year to make sure we give our team time to deliver the next generation experience that represents all that. This game is geared towards, “said studio boss Scott Amos.
That’s a brighter picture elsewhere at Square Enix. We mentioned the Final Fantasy 7 remake, which looks like it has made a lot of money for the HD Games business. In the company’s MMO segment, Final Fantasy 14 saw an increase in operating income year over year due to an increase in the number of subscribers paying monthly.
Overall, for the six months ending September 30, 2020, Square Enix saw a 43 percent increase in revenue and a 46 percent increase in profit. The company shipped 12.08 million copies of the new game during this period, compared with 8.65 million in the same fiscal year prior. The divide between physical and digital is pretty even.