Square Enix struggled in FY2019 despite numerous strong launches.
Though it was firing on all cylinders with games like Shadow of the Tomb Raider, Octopath Traveller and the 13-years-later sequel Kingdom Hearts 3, the publisher’s latest financial report revealed a sharp drop in profitability.
Operating profit in the firm’s digital entertainment sector fell 33 per cent year-over-year to $266 million (¥29.06 billion), even as net sales rose 7 per cent to $1.87 billion (¥204.59 billion).
Overall profit for Square Enix dropped 28.5 per cent to $169 million (¥18.46 billion).
Mobile and browser games came in below expectations over the last 12 months, while the MMORPG space slowed down as Final Fantasy XIV fans wait for this year’s Shadowbringers expansion. Mecha spin-off Left Alive, meanwhile, had a “very disappointing” launch in March.
On the upside, Nier: Automata is still performing two years post-release. Square Enix’s collaboration with Platinum Games recently crossed the four million sales milestone.
Going forwards, Square Enix plans to backload its FY2020 with most games coming in the latter half of the year.
The publisher is taking Sony’s former slot at E3 this year, so expect more news on Square Enix’s upcoming catalogue come June.