Square Enix Reports 65% Loss In Profit For Quarterly Earnings, 22% Drop In MMOs

Final Fantasy ain’t making enough money.

Square Enix has released its Q2 2023 earnings report. While the company experienced a 14.4% increase in total revenue compared to the previous year, profits plummeted by 65%. This decline in profitability is partially attributed to development costs for Final Fantasy XVI.

The MMO and mobile game divisions also faced challenges, with revenues dropping by 22% and 18% respectively. It is expected that MMO revenues may remain subdued until the launch of Final Fantasy XIV: Dawntrail, which is supposed to come out in the summer of 2024.

The specific MMO revenue for the quarter was approximately $77.6 million, marking a two-year low and translating to approximately $25.87 million per month. Something worth noting is that the Japanese Yen has weakened over the past year, which has benefited Square Enix's USD and EUR sales — making the reported figures even more unfavorable.

While these results aren’t exactly satisfactory for the company, Square Enix has maintained its full-year forecasts without adjustment. This suggests the company's confidence in achieving its annual profit and revenue targets, despite an arduous year thus far (financially)... we imagine on the back of Final Fantasy XVI.