Square Enix Reports Full Year Earnings, MMO Revenue Down 11% Year over Year
Square Enix released its full-year earnings report for the period from March 31, 2023, to March 31, 2024, revealing a notable decline in MMO revenues, which were down ~11% year over year.
MMO Business Performance:
- Revenue Decline: MMO revenues, encompassing "Final Fantasy XIV" and "Dragon Quest X," dropped by approximately 11% in Japanese Yen terms. The vast majority of MMO revenues come from Final Fantasy XIV. While Square Enix doesn't break down revenue by title, I estimate that 90%+ of MMO revenues are from Final Fantasy XIV.
- Financial Figures: Total MMO revenue stood at 47.3 billion yen (around $304 million USD) with a profit of 19.3 billion yen (around $124 million USD).
- Currency Impact: The weaker Japanese Yen in 2023 compared to 2022 inflated revenue and profit figures from U.S. and European players, masking a more significant decline in player numbers.
Contributing Factors:
- End of Expansion Cycle: The decline aligns with the end of the "Endwalker" expansion cycle. However, the upcoming launch of "Dawntrail" on July 2 is expected to rejuvenate the player base and boost revenues.
Publication Division Success:
- Sales and Profit Increase: The publication division reported higher sales and profits, marking a bright spot for the company.
- Financial Performance: The division generated 31 billion yen in revenue, with a profit of 11.9 billion yen, resulting in an impressive profit margin of 38.5%.
Square Enix remains optimistic about the future, with the anticipated launch of "Dawntrail" poised to revitalize its MMO segment.
While I haven't played much Final Fantasy XIV myself over the last year, I do plan to return for Dawntrail.
Further Reading: Full Year Earnings Presentation (FY2024)
