ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
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Link: https://www.hd.square-enix.com/eng/news/pdf/19q4release.pdf


Press Release:

Screenshot_20190513-1806022.png


In the Digital Entertainment segment for this fiscal year,"KINGDOM HEARTS III," "SHADOW OF
THE TOMB RAIDER," and "JUST CAUSE 4" drove a rise in net sales compared to the prior fiscal
year. Operating income meanwhile fell versus the prior fiscal year due to higher costs associated with the release of the new titles.
In the smart devices and PC browser area, many of the titles newly launched in the prior fiscal year and first half of this fiscal year performed below expectations and failed to generate additional revenue on top of that from existing games. A decrease in licensing income also resulted in a year-on-year decline in net sales and operating income.
In the area of massively multiplayer online role-playing games, net sales and operating income
decreased compared to the prior fiscal year, which had seen the launch of expansion packages for "FINAL FANTASY XIV" and "DRAGON QUEST X," but recurring subscription revenue remained brisk.

In the Amusement segment, net sales rose compared to the prior fiscal year thanks to the release of new amusement machines and solid amusement facility operations. Operating income meanwhile fell versus the prior fiscal year due to higher depreciation charges associated with the installation of new machines at amusement facilities.

In the Publication segment, net sales in digital formats grew sharply while comics in print format were on par with the prior fiscal year. In addition, the MANGA UP! comic app posted an increase in sales, resulting in this segment's higher net sales and operating income year-on-year.

In the Merchandising segment, net sales and operating income fell versus the prior fiscal year due to a high hurdle set by the release of new merchandise based on key IP a year earlier and to strategic investments aimed at developing new businesses.

About Square Enix Holdings Co., Ltd.
Square Enix Holdings Co., Ltd. with headquarters in Tokyo, Japan, is the holding company leading
the group of Square Enix companies (the "Square Enix Group") with a diverse range of content and service businesses. The Square Enix Group publishes, distributes and licenses entertainment content around the world under its internationally renowned brands including SQUARE ENIX®, EIDOS® and TAITO®. The Square Enix Group includes a global network of leading development studios located in North America, Europe and Japan. The Square Enix Group also boasts a valuable portfolio of intellectual property including: FINAL FANTASY®, which has sold over 144
million units worldwide; DRAGON QUEST®, which has sold over 78 million units worldwide; TOMB RAIDER®, which has sold over 74 million units worldwide; and the legendary SPACE INVADERS®.

______

Final Fantasy Series: 144M units (increase of 2 million units since the last updated numbers at Q2 FY3/2019)
Dragon Quest series: 78M units (increase of 2 million units since the last updated numbers at Q1 FY3/2019)
Tomb Raider series: 74M units (increase of 7 million units since the last updated numbers at Q2 FY3/2019)
 
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ggx2ac

ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
3,504
Final Fantasy Series: 144M units (increase of 2 million units since the last updated numbers at Q2 FY3/2019)
Dragon Quest series: 78M units (increase of 2 million units since the last updated numbers at Q1 FY3/2019)
Tomb Raider series: 74M units (increase of 7 million units since the last updated numbers at Q2 FY3/2019)
 
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Com_Raven

Brand Manager
Verified
Oct 27, 2017
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Europa
Am I thinking of something else, or did they previously forecast such a high numbers due to an unnamed game for FY 20 that many people assumed it had to be Avengers?
 

Masagiwa

Member
Jan 27, 2018
10,026
They usually have a Q&A session with Matsuda following these reports, nothing this time? Maybe those are quarterly.
 

Carmelozi

Banned
Nov 6, 2017
2,158
Am I thinking of something else, or did they previously forecast such a high numbers due to an unnamed game for FY 20 that many people assumed it had to be Avengers?

Slides are here : https://www.hd.square-enix.com/eng/ir/news/pdf/19q4slides.pdf
You can see page 28 it'll be for FY2021.

Organizational Structure
On April 1, 2019, we launched a new organizational structure at SQUARE ENIX JAPAN (SQUARE ENIX CO., LTD.). The new structure will enable us to gain operational efficiencies, make effective use of our resources, and share expertise so that we can focus on increasing our profitability.

Strategy for achieving medium‐term targets
Expand recurring income Target sustainable growth by establishing a stable earnings base that reduces the volatility of our financial performance.

1. Enrich title portfolio through regular launches of new AAA titles
2. Create a long‐tail earnings model by expanding repeat sales, especially by digital download
3. Maximize earnings by deepening user engagement with offering various contents of major existing IP.

Ongoing investment in new IP
We will aggressively invest in new IP on an ongoing basis to enrich our portfolio and enable sustained growth.

Initiatives for sustainable growth after achieving mid‐term target
We will continue to invest in new businesses and technologies to attain stable recurring income from our IP.

Investment in promising entertainment‐related peripheral business domains and technologies such as;
1. 3D Modeling
2. AI (artificial intelligence)
3. Blockchain
4. XR (an umbrella term for Virtual Reality, Mixed Reality and Augmented Reality), etc.

Access to new technologies through investment in a venture capital fund
 

Carmelozi

Banned
Nov 6, 2017
2,158
Thank you! Am I being confused, or was that previously (maybe in the year end report for FY 18?) forecasted to be for FY 20 though?

No no it was firstly forecasted for FY2020 but as they say page 20 :
・In FY2020/3, we will focus on positioning ourselves to achieve our medium‐term targets and on laying the groundwork for what lies beyond.

So we will see the results of their efforts in FY2021 imo.
 

modiz

Member
Oct 8, 2018
18,650
Iirc they originally forecasted a big jump for FY 2020 but now they seemed to move it to FY 2021
Guess avengers got delayed into the next fiscal year.
 

CaviarMeths

Avenger
Oct 25, 2017
10,655
Western Canada
If Avengers is moved to 2021, it may as well be 2023 to me because I wouldn't be buying a next gen console until then anyway. I hope it still releases on PS4/XB1.
 

tolkir

Member
Oct 25, 2017
4,275
So I can only assume "units" includes merchandising and spinoff sales?

*Unit sales are the total number of cumulative package shipment and digital sales. Digital sales are the cumulative unit number in and after April 2015, and include full-game downloads of packaged games and download-only games for console and PC.
 

modiz

Member
Oct 8, 2018
18,650
Is avengers considered a new IP for SE? They are talking about aggressively investing into new ips
 

Carmelozi

Banned
Nov 6, 2017
2,158
Is avengers considered a new IP for SE? They are talking about aggressively investing into new ips

I don't think. It's a Disney IP, not a Square Enix IP so they can't count on this to generate a continuous growth if Disney decides to stop the collaboration. It could be the future Luminous Production IP maybe.
 

ry-dog

Attempted to circumvent ban with alt account
Banned
Oct 25, 2017
2,180
Wait Shadow sold well? Maybe we'll see a 4th entry after all
 

Rosur

Member
Oct 28, 2017
3,577
7M increase for Tomb Raider over the past 3 months? That's pretty massive no?

Would mean shadow shipped/ sold 6m ish and the other 1mill from older games I would guess (going of the final fantasy and dragon quest increases, though it is likely more 6.5 mill sold as the other franchises did have new ports out).
 

Mjolnir

Alt account
Banned
May 2, 2019
95
Wait Shadow sold well? Maybe we'll see a 4th entry after all

Who's going to develop it? All of the Eidos studios are busy with the Marvel GaaS game.

I think we won't see another Tomb Raider game for quite a while. I am not even sure something is in preproduction at the moment.
 

Mbolibombo

Member
Oct 29, 2017
7,060
Would mean shadow shipped/ sold 6m ish and the other 1mill from older games I would guess (going of the final fantasy and dragon quest increases, though it is likely more 6.5 mill sold as the other franchises did have new ports out).

Yeah but that's what's weird to me. Why on earth would Shadow ship another 6M this quarter when it launched in September? Was it heavily discounted? Released on new platforms?
 

Com_Raven

Brand Manager
Verified
Oct 27, 2017
1,103
Europa
I don't think. It's a Disney IP, not a Square Enix IP so they can't count on this to generate a continuous growth if Disney decides to stop the collaboration. It could be the future Luminous Production IP maybe.

Then again, EA does consider Star Wars games (and even their first Battlefront game) "new IP". So who knows how Square would use that language.
 
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Oct 25, 2017
1,511
Yeah but that's what's weird to me. Why on earth would Shadow ship another 6M this quarter when it launched in September? Was it heavily discounted? Released on new platforms?

From what I see on Steam and other PC stores personally , it literally spend about half of the 3 months at 50% discount , maybe more

This chart from Isthereanydeal could tell about its prices in those 3 months

SOTRPC.jpg
 
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Rosur

Member
Oct 28, 2017
3,577
Yeah but that's what's weird to me. Why on earth would Shadow ship another 6M this quarter when it launched in September? Was it heavily discounted? Released on new platforms?

it has been 50% off quite a lot on steam and have been able to buy at £25 ish (at least in the UK) easily on consoles (physically), so probably been a good gift parents have been buying.
 

Tornak

Member
Feb 7, 2018
8,512
RIP FF VII REMAKE 2019 dreams.

Very curious (not really excited tho, especially if it's a Destiny-like) about Avengers. Their E3 is going to be good.
 

Tetsujin

Unshakable Resolve
The Fallen
Oct 27, 2017
3,634
Germany
I'm not even going into how last time people misinterpreted their mid-term target as a "big spike" in sales or whatever and misread FY2020/3 as meaning Q3 of FY2020 and assumed that would be an indication of a massive title (VIIR) being released then.
 

Xenosaga

Member
Oct 27, 2017
12,276
So does it mean that their big game that is releasing by the end of this fiscal year is going to come very late I guess? Which would mean sometime early next year rather than end of this year I guess....
 

Deleted member 20986

Oct 28, 2017
4,911
Pffft 10 years ago j would never have imagined Tomb Raider being among SE's big three franchises, alongside FF and DQ.

Well at least I can expect a new trilogy for Tomb Raider, hopefully a better one.