Square Enix Profits Double Initial Predictions

Recently Square Enix reported a six-month net profit of ¥3.7 billion ($47.45 million USD) ending on September 30th, an increase of 114.9% from last year. This comes shortly after the company increased its initial ¥1.5 billion ($19.2 million) prediction to ¥3.7 billion. In light of this, their profit matches this prediction almost exactly.

Net sales for the period were approximately ¥57.5 billion ($736.8 million), a 15.5% decrease compared to the same period last year, reported at about ¥68 billion ($871.8 million). Additionally, operating income was reported at ¥7.391 billion ($94.6 million), which indicates an increase of 29.4% from the same period last year. Earnings per share were ¥32.19, more than double the previous year.

The revised predictions were attributed to Deus Ex: Human Revolution experiencing good sales, as well increased growth in several young markets. The release indicates Deus Ex shipped 2.18 million units, and it’s important to note that the game was not released in Japan until after these numbers were finalized. While the digital entertainment segment experienced a 16.2% decrease in net sales, it also pulled a 20% increase in operating income.

Analysis: Deus Ex has done exceedingly well, particularly in European markets. Its sales are most likely going to grow further still, given the late release in Japan. The company, like several others, seems to have far exceeded its own expectations by a sleeper hit. Oddly enough, whereas most other Japanese companies experienced an increase in losses due to currency exchange, Square Enix reported a decrease.

In the end, Square Enix is a very strong company financially, so I highly doubt they are in any danger of going bankrupt. If they were, they could easily avert it by releasing a port of some Final Fantasy game to the Vita, PSP, or PS3.

Joshua Moore

About Joshua Moore

Joshua has been a gamer for a long time, starting back with the NES as a child. Since then his interests branched from game systems to general electronics; an avid fan of technology and computers, Joshua graduated with honors from the University of South Florida and now holds a degree in Electrical Engineering. His favorite games include Valkyrie Profile, BlazBlue, Left 4 Dead 2, and Ocarina of Time. Additionally, he attends various BlazBlue tournaments and tries to pick up other anime or air-dasher fighters whenever possible.