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Square Enix Records Million Dollar Losses in its Games Division for Marvel’s Avengers; but it is profitable



Players reported that after the June update, Marvel's Avengers started displaying their IP addresses

Square Enix Presents a year with lights and shadows on the cheap; Final Fantasy 7 Remake works in sales, but Marvel’s Avengers crashes.

It’s time to take stock of the big video game studios, and Square Enix was not going to be less. This morning we’ve revealed the win-loss details of the creators of Final Fantasy during 2020, and the sensations are bittersweet.

On the one hand, it must be said that Square Enix Presents a good first and last quarter of last year, with a growth of 33,7% in-game sales, which exceeds the figures harvested in 2019. Much of” blame ” has Final Fantasy VII Remake for PS4, as well as the MMORPG Dragon Quest X and Final Fantasy XIV.

During these two periods, Square Enix increased its revenues by 47.7% (about 41,000 billion yen), but this led to a lower balance than the one achieved in 2019 during the same period. Mind you, Final Fantasy 7 Remake made the company 34 billion yen.

So why hasn’t the growth been as great as the results project? The culprit has first and last names: Marvel’s Avengers. Beyond the quality of the game, the truth is that it has crashed in sales and this is reflected in the second and third quarter of 2020 for Square Enix.

Despite earning 18.8 billion yen, the creators of Final Fantasy recorded losses of up to 5 billion yen during that period, to which must be added the expenses in publicizing Marvel’s Avengers and others. As a result, the profit balance is 4.3% lower than in 2019.

We have already talked about this unexpected failure on other occasions, although Square-Enix will continue to release content for the Avengers game and thus try to recover part of the investment in it, which is a lot. Thus, Square-Enix’s gaming division is undermined by this failure.

The Japanese company is already facing the future, which goes through Final Fantasy XVI for PS5, although some rumors suggest that Final Fantasy 7 Remake will arrive on PS5 and other consoles, in addition to the launch of Life is Strange 3.

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