Square Enix, the Japanese video game company, has reported strong financial results for the fiscal year ending March 31, 2021. The company’s revenue increased by 27.5% year-on-year to ¥330.7bn ($3.04bn), with operating income up 44.1% year-on-year to ¥42.4bn ($390m) and net income up 46.8% year-on-year to ¥34.1bn ($314m). The success of the company’s latest game, Final Fantasy 7 Remake, which sold over five million copies worldwide within the first six months of release, was a key factor in the revenue increase. Square Enix’s digital sales offset the decline in physical sales during the pandemic. The company plans to expand its presence in the mobile gaming market and invest in new intellectual properties.
Square Enix reports strong financial year thanks to Final Fantasy 7 Remake
Introduction
Square Enix Holdings Co., Ltd. (SQNXF) has reported its financial results for the fiscal year ended March 31, 2021. The company saw a significant increase in revenue and profits, thanks to the success of its latest game, Final Fantasy 7 Remake.
Revenue Increase
Square Enix’s revenue for the fiscal year ending March 31, 2021, increased by 27.5% year-on-year to 330.7 billion yen ($3.04 billion). This was the highest single-year revenue for the company since 2008. Square Enix attributes this increase to the success of Final Fantasy 7 Remake, which sold over 5 million copies worldwide within the first six months of its release.
Profits Increase
In addition to the revenue increase, Square Enix also saw a significant increase in profits. The company’s operating income for the fiscal year ending March 31, 2021, was 42.4 billion yen ($390 million), up 44.1% year-on-year. Net income was 34.1 billion yen ($314 million), up 46.8% year-on-year.
Impact of COVID-19
Despite the COVID-19 pandemic affecting the gaming industry, Square Enix was able to maintain its operations and release its games on schedule. The company implemented remote work policies and other safety measures to protect its employees while continuing to develop and release games. Square Enix’s digital sales also increased during the pandemic, which helped to offset the decline in physical sales.
Future Plans
Square Enix has several upcoming games that it expects to contribute to its future growth, including Marvel’s Avengers, Outriders, and the next installment in the Final Fantasy series. The company also plans to expand its presence in the mobile gaming market and invest in new intellectual properties.
Conclusion
Square Enix’s success with Final Fantasy 7 Remake has led to a strong financial year for the company. The game’s sales helped to offset the impact of the COVID-19 pandemic on the gaming industry. Square Enix has several upcoming games and plans for growth, which should help the company continue its success in the future.