For the year ending March 31, 2012, Square Enix have recently posted their Consolidated Financial Results. In it, the company revealed they have returned to profitability in fiscal year 2012 with the turnaround being significantly driven by the Digital Entertainment division within Square Enix. The entire company posted revenues of ¥127.9 billion ($1.6 billion USD), an increase of 2.1%; and net profits of ¥6.1 billion ($76 million), compared to last years’ loss of ¥12 billion ($150.3 million).
Titles such as Deus Ex: Human Revolution, Final Fantasy XIII-2, and Sengoku Ixa have spearheaded the Digital Entertainment division’s success, with revenues for the division increasing to ¥71.9 billion ($901.1 million) and operating profits of ¥12.6 billion ($157.9 million), an increase of 11.9% and 11.7% respectively. Moving forward, the company is exploring possible acquisitions to sustain the momentum gained over the last year.
Analysis: I’m happy to hear the news that Square Enix has returned to profitability for the last year, and they deserve it thanks to having released some quality titles over the last year. Not many studios who are given the task to develop a sequel to Deus Ex would be able to deliver on it, but Eidos Montreal managed to pull of the impossible, so kudos to them.
As for the next year, Square Enix has made sustaining profitability one of the key goals of the company, and the projections made in the financial report paint a successful picture if it proves to be true. Two titles I’m excited to get my hands on are Sleeping Dogs and Hitman: Absolution. If the two titles perform to expectations, I would be hard-pressed to come up with a reason why the company wouldn’t reach their projections, given that the other divisions don’t suffer a heavy loss.
With a string of strong titles coming out over the course of the next year, the Digital Entertainment division of Square Enix will most likely remain one of the most successful branches of the company.