Square Enix, a Japanese game company, has reported a 43% increase in revenue from April to December 2020, credited to a surge in demand for digital entertainment during the pandemic. The company’s digital sales, notably Final Fantasy XIV and Dragon Quest X, greatly contributed to its growth. The pandemic has had a significant impact on the video game industry, with gaming revenues in the US reaching a record-breaking $56.9 billion in 2020. Square Enix’s successful digital sales indicate that as people stay at home, the demand for entertainment has increased, creating a new market for the gaming industry.
Square Enix reports increase in profits due to digital sales during pandemic
Introduction
Square Enix, a Japan-based game company, has reported an increase in profits during the pandemic thanks to their digital sales. The company’s revenue for the period from April to December 2020 was ¥242 billion ($2.3 billion), up 43% from the same period in the previous year. Square Enix has attributed this growth to the surge in demand for digital entertainment while people stay at home during the pandemic.
Details of the Performance
Square Enix announced on Monday that its digital sales, especially for “Final Fantasy XIV” and “Dragon Quest X,” contributed significantly to the company’s growth. According to the company, “Final Fantasy XIV” has surpassed 20 million registered users worldwide. The number of subscribers has been increasing as the game releases updates regularly. “Dragon Quest X,” a massively multiplayer online role-playing game (MMORPG), has also shown strong performance in its subscription services.
Effect of Pandemic on the Video Game Industry
The pandemic has had a significant impact on the video game industry. With people being confined to their homes, video game sales have surged, providing entertainment to those stuck inside. According to a report by market researcher NPD Group, the industry’s U.S. revenues increased 27% to $56.9 billion in 2020, a record-breaking year for gaming. Video game companies have reported a significant growth in digital sales during the pandemic. The lockdowns and stay-at-home orders have created a new market for the gaming industry.
Conclusion
Square Enix’s strong performance during the pandemic has been a result of their successful digital sales. As people stay at home, the demand for entertainment has skyrocketed, creating a new market for the gaming industry. Square Enix’s “Final Fantasy XIV” and “Dragon Quest X” have contributed significantly to the company’s revenue growth. As the pandemic continues to impact our daily lives, companies such as Square Enix are likely to continue thriving, providing entertainment to those stuck indoors.